MADRID, 26 Nov. (EUROPA PRESS) -
The National Securities Market Commission (CNMV) has recalled that its Code of Good Practices aimed at institutional investors, asset managers and proxy advisors provides that they must have "transparency" in their remuneration systems.
This is what the financial regulator has expressed in a question and answer document released this week that includes a series of indicative clarifications on the Code, which was approved in February 2023.
The Code aims to improve the quality of corporate governance and investment practices of entities. However, it does not have a regulatory nature and its adherence is completely voluntary. Until the promotion, Caser Pensiones, BBVA Asset Management, Fonditel, Santander Asset Management, Santander Pensiones and Corporance Asesores de Voto have adhered to the Code.
"The remuneration structure [must] be aligned and encourage executive directors and senior managers to effectively apply their strategies and objectives, in favor of obtaining, by said investors or managers, long-term performance" , indicates the CNMV.
Likewise, the regulator considers it important that the participating entities report "what part, whether relevant, insignificant or null, of the variable remuneration is linked to the fulfillment of the objectives and strategies."
In any case, the CNMV recommends "sufficient transparency" about how this type of remuneration is linked to the achievement of objectives. And although it is "desirable" that this link exists between objectives and variable remuneration, the CNMV recognizes that there are "different alternatives" to achieve alignment on the part of managers.
"It is important that investors and managers justify, both in the remuneration policy and in the annual report, that the remuneration structure and the amounts annually accrued are aligned with their business strategy and with the objective for such investors or managers of achieving long-term performance," prescribes the organization directed by Rodrigo Buenaventura.
In any case, the CNMV does not assess the different remuneration systems, and leaves it to each entity to evaluate and determine how it is most appropriate to achieve alignment on the part of investors and managers.
