Telecom giant, Telefónica, has agreed to provide additional pension benefits totaling 23 million euros to Pallete and Vilá upon their retirements following their departures.
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Telefónica Spills the Beans: Pallete and Vila Get Paid
According to El Confidencial, Telefónica's board has agreed to unfreeze a whopping 23 million euros in compensation for former president José María Álvarez-Pallete and ex-CEO Ángel Vila. The funds were initially withheld due to concerns about potential incompatibilities with their severance packages worth a staggering 72 million euros.
These funds, totaling 12.8 million for Pallete and 10.13 million for Vila, had been stashed in the Social Prevision Plan, a creative scheme concocted by Pallete's predecessor, César Alierta, as disclosed by sources close to the operator.
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Back in 2023, the Telefónica Board deemed it inappropriate to receive both the termination payment and the Social Prevision Plan, all of which Jose and Ángel seemingly agreed to. The payout halt happened as Jose vacated his position, and newcomer Marc Murtra took the reins, whose contract specified no recognition of Social Prevision Plan rights if he received termination compensation.
Despite earlier contracts predating this clause, the total compensation for Jose and Ángel now stands at a cool 36.3 million and 28.1 million, respectively. The payouts include a mix of protection money, years-long fixed and variable salaries, and funds from the Social Prevision Plan.
In addition, they each have a shot at stock share packages via the 2022-2024 triennial incentive plan, amounting to 995,000 for Jose and 745,000 for Vila. As they've already been booted, they'll collect their liquid cash amounts, currently valued at 4.67 million for Jose and 3.5 million for Ángel.
Summing up all the goodies, Jose will pocket around 41 million, and Vila, approximately 31.6 million—well over the initial 72 million.
Telefónica keeps mum on the subject when EFE pokes for comments. EFE
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1. It appears that José Maria Álvarez-Pallete, former Telefónica president, and Ángel Vila, ex-CEO, who received severance packages worth a combined 72 million euros, will also receive a significant portion of their earnings from a creative business scheme called the Social Prevision Plan, which was initially foresighted by César Alierta.
2. As the stock market continues to fluctuate, with the Madrid Exchange falling 0.52%, some might wonder how the recent financial terms received by the executive duo of Telefónica will affect the sports world's sponsorship deals and potential investments in the business and finance arena.
