Repsol has increased CEO Josu Jon Imaz's salary by 17% to €4.8 million and has taken away the Council's power to adjust his bonuses based on performance.
Repsol, Spain's largest oil company, has announced a 17% pay increase for its CEO, Josu Jon Imaz, bringing his total compensation to €4.8 million for 2025. This pay rise comes amid a proposed 10% increase in fixed remuneration for 2026, despite an overall decline in oil prices. The decision to hike Imaz's salary is supported by the company's main shareholders as part of a strategic adjustment process aimed at stimulating performance and retention in the upper management level.
Additionally, Repsol has decided to strip the Council of its previous authority to make discretionary adjustments to Imaz's bonuses based on his performance metrics. This move indicates a shift in the company's compensation structure, which may create more stability in Imaz's pay and ensure that he focuses on long-term company goals without the volatility of annual performance reviews impacting his achievable bonus structure. The rationale behind this change is to align Imaz's interests with those of the shareholders while ensuring he has consistent incentives to lead the company effectively.
The backdrop to these decisions includes various challenges facing Repsol, including a recent collapse in crude oil prices and upcoming legal claims concerning a significant financial shortfall. Despite these pressures, the company has remarkably raised dividends by 8% due to nearly €1.9 billion in earnings. This juxtaposition of increased executive salaries amid broader market difficulties highlights the complexities of corporate governance and compensation practices, particularly in the energy sector where performance can drastically fluctuate with market conditions.
