Cie Automotive is a Basque industrial group that specializes in high-value processes. In 2023, Jesús María Herrera, the CEO of the company, was the highest-paid executive on the Spanish stock market, earning 23.77 million euros. The extreme wage gap between the CEO and employees highlights the ongoing issue of wage inequality in many companies, both Spanish and foreign.
The wage disparity within Cie Automotive is just one example of the persistent income inequality that exists in many companies. According to a remuneration report compiled by EL PAÍS with data from companies listed on the Spanish stock market, executives earn significantly more than average employees across various sectors. Despite efforts to address this issue, recent years have not seen a significant improvement in wage equality within these companies.
Indra, Inditex, Banco Santander, and Sacyr are among other Spanish companies that follow closely behind Cie Automotive in terms of wage inequality. Senior management also benefits from salary improvements within these organizations. The distribution of remuneration among executive directors and senior managers includes a mix of cash, shares, and pension contributions.
Although women are increasingly present in executive positions within large listed companies, they occupy very few roles with executive tasks. This disparity is reflected in salary rankings where only a few women are among the highest-paid directors. Corporate governance manuals emphasize the importance of balanced compensation schemes to motivate executives while minimizing unnecessary risks.
Pension contributions for executive directors have become more prevalent among large listed Spanish companies; many executives accumulate significant retirement funds as a result. The issue of golden parachutes – compensation paid to executives upon termination – has also been a subject of debate in recent years, with measures taken to limit excessive payouts to executives leaving their companies.
Ultimately, addressing wage inequality within companies is an ongoing challenge that requires sustainable and fair compensation practices that benefit both executives and employees alike. Efforts will continue to be focused on this issue by both corporations and regulators alike as they strive for greater balance and equity within their organizations’ payrolls.