MADRID Feb 28 Spanish telecoms company
Telefonica paid former Chief Operating Officer Julio
Linares 25 million euros ($32.8 million) in compensation in a
management rejig in 2012, upping total executive payouts by 80
percent from the year before.
Telefonica, which sold a number of assets and scrapped its
dividend last year to pare debt, also cut board member pay by 20
percent as part of its cash-raising drive.
However, documents sent to the stock market regulator on
Thursday showed the company paid out 50.6 million euros to
executives in 2012, compared to 28.2 million euros the year
COO Linares received 24.7 million euros as compensation when
he was replaced by Jose Maria Alvarez-Pallete in September as
part of a management reshuffle that saw Eva Castillo take over
Alvarez-Pallete's role as head of the company's European
Telefonica said excluding compensation for Linares and
bonuses he received, executive pay in 2012 was lower at 22.4
million euros. Linares remains on the board of the company.
The Spanish telecoms giant reported a 27 percent drop in net
profit on Thursday, after making writedowns on various
businesses. It reported a dip in revenues and rise in operating
income in line with estimates.
Analysts cheered signs of stabilisation in the group's
Telefonica, which listed its German unit last year
as part of a series of debt reduction measures, said it aimed to
reduce debt to under 47 billion euros in 2013, compared to 51.3
billion euros at end-2012.
($1 = 0.7628 euros)
(Reporting by Robert Hetz and Clare Kane)