6.6 REMUNERATION OF THE BOARD OF DIRECTORS AND SENIOR EXECUTIVES

6.6.1. Bylaw-stipulated directors’ remuneration

Under the Company’s current remuneration scheme, regulated by Article 56 of its bylaws, the shareholders at the General Meeting determine the maximum annual remuneration for all the members of the Board of Directors, which is revised on the basis of the indices or aggregates defined by the General Meeting. This remuneration comprises (i) fixed remuneration and (ii) fees for actual attendance at Board and Committee meetings. Remuneration is linked to the functions and responsibilities assigned to each director, their membership of Board Committees and other objective circumstances that the Board of Directors deems relevant, thereby ensuring their independence and commitment in the long term.

On the same date as that on which these consolidated financial statements were authorised for issue, the Board of Directors prepared and made available to the shareholders the Annual Report on Directors’ Remuneration referred to in Article 541 of the Spanish Limited Liability Companies Law. That Report describes in greater detail matters relating to the Company’s remuneration policy applicable in the year and contains an overview of how the remuneration policy was applied in 2017 and a detail of the individual remuneration earned by each of the directors in 2017.

The table below shows the itemised bylaw-stipulated emoluments of the members of the Board of Directors earned in 2017 and 2016. It also includes the supplementary fixed remuneration relating to the bylaw-stipulated emolument. If because there are more meetings than initially envisaged or for any other reason the amount of the attendance fees added to that of the fixed components exceeds the total maximum amount of remuneration for Board membership established for the year in question, the difference is deducted from the amount of the supplementary fixed remuneration proportionally for each director on the basis of his or her position on the Board. At the Board of Directors meeting of 28 February 2018 it was decided, within the maximum limits approved by the General Meeting, to supplement the amount of supplementary fixed remuneration for 2017 for the entire Board by EUR 145,421, sharing the amount among the directors according to their time on the Board in 2017.

This table does not include the remuneration received by the executive directors for the discharge of their executive functions at the Company, which are described in Note 6.6.2.

6.6.2. Individual remuneration of the executive directors

a) Remuneration earned in 2017 and 2016

The two executive directors in 2017 earned the following remuneration for discharging their functions, in addition to the remuneration discussed in the preceding section.

b) Share-based payment systems

Following is a detail of the targets-based remuneration schemes linked to the performance of the share, entitlement to which has not yet vested.

6.6.3. Remuneration of the members of the Board of Directors due to membership of other managing bodies of Group companies or associates

A director of the Company Joaquín Ayuso García, who is in turn a member of the managing body of another Group company, received EUR 31 thousand in this connection in 2017 (2016: EUR 36 thousand).

6.6.4. Pension funds and plans or life insurance premiums

As in 2016, no contributions were made in 2017 to pension plans or funds for former or current members of the Company’s Board of Directors or for directors of the Company who are members of other Boards of Directors and/or senior executives of Group companies or associates. Similarly, no obligations were acquired in this connection in 2017.

As regards life insurance premiums, the Company has insurance policies covering death (for which premiums totalling EUR 13 thousand were paid in 2017; EUR 12 thousand in 2016), of which the executive directors are beneficiaries. No life insurance premiums were paid for the directors of the Company who are members of other Boards of Directors and/or senior executives of Group companies or associates.

Lastly, the Company has arranged a third-party liability insurance policy the insureds of which are the directors and executives of the Group companies the parent of which is the Company. Those insureds include the Company’s directors. The premium paid in 2017 under the aforementioned insurance policy amounted to EUR 589 thousand.

6.6.5. Advances and loans

At 31 December 2017, no advances or loans had been granted by the Company to the directors in their capacity as such or as members of other Boards of Directors and/or as senior executives of Group companies or associates.

6.6.6. Remuneration of senior executives

The joint remuneration earned by the Company’s senior executives in 2017 was as follows:

The aforementioned remuneration corresponds to the following posts: General Secretary, Chief Financial Officer, General Director of HR, General Director of Construction, General Director of Real Estate, General Director of Services, General Director of Airports, General Director of Toll Roads, General Director of Information Systems and Innovation, Director of Internal Audit, Director of Communications and Corporate Responsibility and Director of Corporate Strategy. This does not include remuneration for senior executives who were also executive directors, which was addressed in Note 6.6.2.

The Company has also introduced a flexible remuneration system called the Flexible Remuneration Plan, which provides employees with the possibility of voluntarily modifying their remuneration package based on their personal needs, replacing a portion of their remuneration with the award of certain payments in kind. These products include a Group life and retirement-related savings insurance plan. Participants may request that a portion of their gross annual remuneration be paid by the Company in the form of a premium for a Group life and retirement-related savings insurance policy. In this connection, the senior executives requested contributions of EUR 181 thousand from the Company, instead of the equivalent remuneration shown in the foregoing table (2016: EUR 83 thousand).

6.6.7. Other disclosures on remuneration

The agreements between the Company and senior executives, including one executive director, specifically provide for the right to receive the indemnities referred to in Article 56 of the Workers’ Statute in the event of unjustified dismissal.

At 31 December 2017, additional rights had been established in the contract of one senior executive.

In order to encourage loyalty and long-service, a deferred remuneration scheme was recognised for eleven senior executives, including one executive director. The scheme consists of extraordinary remuneration that will only be paid when one of the following circumstances occurs:

• Removal of the senior executive by mutual agreement upon reaching a certain age.
• Unjustified dismissal or termination by the Company at its discretion without any justification for dismissal, prior to the senior executive reaching the age initially agreed upon, if the amount of this remuneration exceeds that resulting from applying the Workers’ Statute.
• The death or disability of the senior executive.

These contributions are quantified on the basis of a certain percentage of the total monetary remuneration of each senior executive. To cover this incentive, each year the Company makes contributions to a Group savings insurance policy, of which the Company is both policy-holder and beneficiary. The contributions made in 2017 amounted to EUR 2,366 thousand (2016: EUR 2,342 thousand), of which EUR 542 thousand correspond to executive directors.

Individuals are occasionally hired to hold executive positions, mainly from abroad, in areas unrelated to senior management. The contracts of these individuals include certain clauses that provide for indemnities in the event of unjustified dismissal.