BBVA admits that it may have an "economic impact" in the case of espionage

BBVA admits that it may have an "economic impact" in the case of espionage

The compensation of Francisco González was 5.5 million in his last year in office at the head of the entity, whose current management also recognizes the "reputational risk" of the open investigation into Villarejo.

  Among all the risks that may affect BBVA this year -evolution of the economy, interest rate policy, judicial disputes-, the entity has recognized for the first time and officially that the case of the alleged espionage commissioned to former Commissioner Villarejo joins the potential problems that you will have to face. Therefore, and also explicitly, the bank points out that such practices "could have a negative impact" that can be "reputational" or "economic" for the business of the corporation.

  A month after the first information was leaked about the work allegedly carried out by the bank to the security company Cenyt -linked to Villarejo- to track the lives of businessmen, politicians and journalists, to avoid the assault of Sacyr Vallehermoso the entity, the bank expresses in its annual corporate governance report the reality of the espionage problem. Although in any case relates its future consequences to confirm the "recruitment of allegedly irregular activities."

For now, BBVA has not been immersed in any judicial investigation, because it has not received any confirmation of the demands that were going to present some of the theoretically spied citizens, such as the former socialist minister and former director of the Bank's own Studies Department, Miguel Sebastián , or the action that the Clean Hands organization was going to propose. The corporation does not have "any notification" about it on the table .

The entity clarifies to the CNMV in that document of mandatory referral to the supervisor that is still underway the internal investigation ordered by the current president, Carlos Torres, in collaboration with PwC, Garrigues and Uría to clarify what happened 14 years ago, when the former president of the Francisco González group saw how they could usurp the power if it triumphed the operation led by the real estate then chaired by Luis del Rivero. BBVA anticipates that «it is not possible to precede the scope or duration» of that analysis «nor its possible result» or «implications» for the financial group.

The confirmation of this contingency comes two weeks after the current president, Carlos Torres, appeared publicly to present the results of the bank in 2018. In that hearing he already warned that, despite the voices that urged him to act with his predecessor to avoid damaging BBVA's reputation, he said he was not going to "make any decision until the investigation is over".

Torres made a fierce defense of Gonzalez before the controversy over the alleged plot of espionage. «I believe him» , he clarified. And he indicated that he has it as "a guide and a reference" in the work that both have shared in the last ten years. From his conversations during the last days, since several media began to publish information about it, Gonzalez would have told Torres that his conscience "is very calm" . Because, as he explained, "I did not know anything about the irregularities" that have been published.

Past and future salaries
In the remuneration report sent to the stock exchange supervisor, BBVA explains that Francisco González earned 5.47 million euros for all types of remuneration (cash and consolidated bank shares) during his last year as head of BBVA. This is included in the annual report that the entity has sent to the CNMV, where it details that the salary of the former president of the corporation decreased by 5.5% in 2018 compared to the previous year.

This reduction is explained by the decrease of the variable part that González has assigned in his remuneration, whose amount was 2.64 million euros, 20% lower than the previous year. This decrease is explained by the variable salary of González, as well as by the executives of the bank that charge compensation, evolves according to the results of the entity, whose trajectory faltered in 2018 in territories such as Turkey or Argentina. BBVA recognizes this in its report, emphasizing that these objectives are "below the established" initially.

In the case of the fixed part of salary, Francisco González kept his salary in the environment of 2.47 million euros. If this amount is added to the variable and the 1.41 million euros received through the bank's shares corresponding to 2018 on a consolidated basis, the remuneration is around 5.5 million compared to almost 5.8 million in 2018. last year, González had accumulated, in addition, 79 million euros in his pension plan forged during the 18 years he was in charge of the bank.

The remuneration policy of BBVA states that 40% of the variable - some 528,000 euros - will be charged in the first quarter of this year; half, in shares, and the other half in cash. The remaining 60% is deferred and will not begin to be paid until 2022, that is, in a period of five years. The bank not only has not paid this amount to its current president of honor, but also that payment is linked to the clauses that can limit or prevent paymentfor possible negative results, bad practices or other circumstances. The entity has opened an internal investigation to determine the responsibility of González in the alleged case of the espionage ordered to the security company Cenyt to control businessmen, politicians and journalists before the possible disembarkation of Sacyr and other partners in the shareholding of the group in 2004 The reception of the funds corresponding to him as president will depend on the result of this analysis.

The new dome
For its part, the newly appointed president of BBVA, Carlos Torres, will earn a fixed remuneration of 2.45 million euros, an amount that can not be increased by more than 5% on an annual average. It is the same salary that his predecessor in his position had received up to now. This will be the case if approved by the shareholders meeting of the bank, which will take place on March 15 in Bilbao.

In his capacity as CEO until December 31, Carlos Torres obtained a fixed remuneration of 1.96 million euros, the same as in 2017, while the variable part was reduced by 15%, to 2.4 million of euros, as in the case of González, for not reaching the objectives set at BBVA in certain foreign countries where it operates. The group made a contribution to its forecast system of 1.6 million euros, which corresponds to the annual contribution for retirement set in 2017.

In the case of the new CEO, Onur Genç, the board has proposed a salary of 2.18 million euros , pending the validation of the board. In addition to an insurance for disability and death, you will have two additional fixed remunerations for your status as a senior international executive: an annual amount in cash, which replaces the retirement pension, equivalent to 30% of your annual fixed remuneration, and a annual amount in cash, as a supplement to mobility, which is equivalent to 600,000 euros per year.

Genç's remuneration in 2018 was based on his position as CEO of BBVA Compass and head of BBVA in the United States. For these functions generated a fixed remuneration of 2.2 million euros, while the variable part for 2018 was set at 980,000 euros.