What to know
BBVA said combined compensation for Chair Carlos Torres Vila and CEO Onur Genç fell 3% in 2025. The decline reflects deferred and variable-pay formulas despite stronger profit in the bank's main markets.
Further reading and standardsMADRID — Spain's second-largest financial institution, Banco Bilbao Vizcaya Argentaria (BBVA), formally disclosed in its annual regulatory filing that total remuneration for its executive leadership decreased by 3% in fiscal year 2025. Total compensation for Executive Chairman Carlos Torres Vila dropped to €7.92 million ($8.43 million), down from €8.16 million in the prior year, while Chief Executive Officer Onur Genc saw his annual compensation contract to €6.91 million ($7.36 million) from €7.15 million.
What Happened: The Paradox of Record Bank Profits and Lower Executive Pay
The modest compensation contraction comes during a landmark year in which BBVA delivered the highest net income in its 168-year history. Annual net profit climbed to a record €8.52 billion, propelled by sustained high European Central Bank interest rates that widened net interest margins across Iberian retail accounts.
According to the bank's remuneration committee report submitted to the Comisión Nacional del Mercado de Valores (CNMV), the decline was not caused by performance shortfalls, but rather by long-term multi-year deferred share awards vesting at lower calculated valuations and tightened European regulatory caps on variable banking bonuses.
Market Context: Executive Compensation Restraint Across European Banking
BBVA's pay disclosures reflect growing governance pressures across European financial centers. While Wall Street peers such as JPMorgan Chase and Bank of America awarded substantial compensation increases to top leaders, European lenders face stringent oversight under the European Banking Authority's Capital Requirements Directive:
- Deferred Equity Requirements: Over 50% of variable compensation for Torres and Genc remains deferred over a five-year period, tied directly to solvency ratios and environmental benchmarks.
- Bonus-to-Base Caps: Strict EU regulations cap variable bonuses at 200% of fixed salary, preventing the explosive bonus expansions typical of American banking giants.
- Spanish Tax Pressures: A temporary Spanish banking windfall levy continued to compress net capital distribution, intensifying shareholder scrutiny on board remuneration.
Strategic Impact: Sabadell Takeover Ambitions and Mexican Growth
The executive pay figures arrive as BBVA pursues one of the most consequential banking consolidations in Southern Europe: its hostile €12 billion takeover bid for domestic rival Banco Sabadell. Chairman Carlos Torres has spent much of the past year lobbying regulators and Sabadell shareholders to back the mega-merger:
Simultaneously, BBVA Mexico remains the bank's crown jewel, contributing more than 52% of group profit despite peso volatility. Analysts highlight that Genc and Torres have successfully protected return on tangible equity (ROTE) at 17.7%, positioning BBVA among the most profitable banks in the Eurozone.
What to Watch Next: Regulatory Approvals and 2026 Dividend Outlook
Investors are closely watching several critical milestones in the coming quarters:
First, Spain's antitrust watchdog (CNMC) and the national government will render their final verdict on the Sabadell merger remedies. Second, BBVA's board has committed to a generous shareholder remuneration policy, with payout ratios expected between 40% and 50% of 2026 net profits through interim dividends and ongoing share buyback programs.
Further reading
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