Quinta dos Vales 2016 Open Door 7.jpg

Fat cat salaries plummet

Executive salaries for companies quoted on the Lisbon stock market plummeted by around 33% in 2010.

The CEOs of PSI 20 companies such as Portugal Telecom, Galp, BES, Sonae SGPS, EDP, Sonaecom, Zon and Jerónimo Martins all saw their salaries, which totalled €15 million last year, tumble in relation to payouts in 2009.

Even so, Portugal’s most important chief executives still managed to rake in an average of €41,457 a day while many pensioners struggled to survive on a monthly salary of barely €350.

Zeinal Bava, the CEO of Portugal Telecom, a company which enjoys a monopoly position in Portugal, netted €1.42 million, Galp’s Ferreira de Oliveira earned a cool €1.34 million and Banco Espirito Santo’s Ricardo Salgado took home €1.22 million.

António Mexia from EDP, who said complaints and indignation over his €3 million-plus bonus were the reactions of the “slothful and envious”, this year only managed to bank just over €1 million.

The reduced millionaire salaries were in line with falling profits for key Portuguese companies across the board.

Some 34% of the total salaries were paid out in bonuses voted by shareholders, although in 2009 that percentage represented 47% of the total.

Last year Portugal Telecom increased its profits by 728% thanks to the sale of Vivo, which bagged €5.5 billion for the company.

Bonuses were not paid to some company CEOs last year because of poor performance, including BCP’s Carlos Santos Ferreira, Brisa’s Vasco de Mello and REN’s Rui Cartaxo.

One of the Portuguese companies that faired the worst in 2010 was the national air carrier TAP, which suffered losses of €53 million.