The Digester
finance

Telefónica investors rebuke 78.4m euro executive payouts as pay report wins 65.3%

Institutional investors led by Norges and US public pension funds penalized Telefónica's 2025 pay report after 78.4 million euros in exit payments to former executives, while a tighter 2027-29 remuneration policy won broad approval.

Mar 31st 2026 · Spain

Insights

  • The annual remuneration report received 65.29% support after investors protested 78.4 million euros paid to José María Álvarez-Pallete and Ángel Vilá.
  • Votes against the pay report were 18.74% with 15.97% abstaining, meaning more than one third of attending shareholders withheld explicit support.
  • Norges Bank, CalPERS and other large funds cited lack of transparency and opposed four years of salary paid as indemnity, arguing international best practice limits severance to two years.
  • A new 2027-29 remuneration policy that caps severance at two annual salaries and bans double payments won 81.29% backing.
  • State and strategic holders SEPI (10%), CriteriaCaixa (9.9%), Saudi Telecom (9.96%) and BBVA (5%) combined to secure board stability.
  • Ordinary items including approval of the 2025 accounts, a 0.15 euro dividend payable 18 June 2026, and PwC as auditor were passed with over 99% support.

Sources