Compensation ratios between the organization’s highest paid individual in each country of significant operations to the median compensation for all employees in the same country (not counting the highest-paid individual)

Country Total annual compensation of the highest paid individual[1] / average total annual compensation of all staff[2] Percentage increase in total annual compensation of the highest paid individual[1]/ Percentage increase in average total annual compensation of all staff[2] The difference in the percentage increase in total annual compensation of the highest paid individual and Percentage increase in average total annual compensation of all staff[5] (%)
Bolivia 2.30 -0.96 4.50
Brazil 2.84 16.14 13.96
Canada[4] 12.97 - -
Ecuador[6] 5.99 0.06 59.38
Spain[3] 12.79 4.08 5.58
United States[4] 12.01 - -
Indonesia[4] 2.01 - -
Malaysia[4] 3.12 - -
Peru 9.46 -6.71 25.91
Portugal 4.34 7.74 16.14
Repsol, S.A.[3] 25.49 -0.19 1.64

We analyze salary markets in the countries and business sectors in which we operate to establish internal objectives for the average employee salary positions by taking into account external salary markets. The criteria to determine this are generally similar for all employee and director collectives therefore, for this compensation policy; the data in the table should reflect the salary distribution that is characteristic of the country and business sector in which we operate.

We decide the budgets for base salary increases each year for each group of employees and establish the criteria to limit maximum individual increases. The average salary increase for all staff is reflected in the salary base corresponding to each professional group, and also the salary increase percentages applied to each group, both those approved by the company and those established through collective bargaining or legal requirements.

2016 has been characterized by wage moderation, which, combined with programs for resizing staff and divestments of non-strategic assets, has led to negative increases in the average salary of all staff in some countries. On the other hand, compensation for the highest paid individual could also increase or decrease due to variable components of those that act in positions with greater responsibility have a greater relatively more weight on the average, even if the base salary remains frozen.

 

  1. The best paid person has been identified without considering expatriate staff from other sources or employees who has caused a loss before December 31 of the year.
  2. For total annual compensation, we have considered compensation in cash which includes personnel cost items: base salary, fixed allowances, seniority, variable allowances, extra hours, and other compensation.
  3. The senior executives have been included in the line called "Grupo (Repsol, S.A.)" and are compared with the average remuneration of the entire staff of the Group's parent company (Repsol, S.A.). Its functions are world-wide and are not confined to any single country. The Senior Management, considered for the purposes of this report, comprises the members of the Corporate Executive Committee, taking the remuneration for their executive functions and not including the ones they could receive for functions as a member of the Board of Directors of Repsol S.A. or any of its subsidiaries.
  4. Not considered data of companies of the Talisman group for 2015 being the year of its acquisition, with the consequent wage distortions.
  5. The requested ratio is highly distorted by sign changes (negative increments), so the total percentage difference between both comparative increments (absolute value) is also reported.
  6. In Ecuador there is an unusual increase in the average remuneration for 2016 as a result of “Utilidades” (in 2015 there were no profits).