Other information on remuneration

As regards the members of Senior Management, including two Executive Directors, the contracts signed between the Company and Senior Management expressly provide for the right to receive indemnities in the event of unfair dismissal, as established in article 56 of the Workers' Statute.

Also as regards this section, it should be mentioned that in order to enhance their loyalty and permanence, deferred remuneration has been granted to eight Senior Managers, including two Executive Directors. This is an extraordinary remuneration item that is effective only when one of the following circumstances occurs:

  • A Senior Manager leaves by mutual agreement upon reaching a certain age.

  • Unfair dismissal or severance without just cause prior to the date on which the Senior Manager reaches the age initially agreed upon, if the amount is higher than that resulting from applying the Workers' Statute.

  • Death or disability of a Senior Manager.

To cover this incentive, the Company makes annual contributions to a group savings insurance, in which the Company is both the policyholder and beneficiary; they are quantified according to a certain percentage of the total monetary remuneration of each Senior Manager. The amount paid for this item totalled 1,965,000 euros in 2007 (1,619,000 euros in 2006).