An average Spanish worker would need more than a hundred years of work to reach the annual income that a senior manager in some of the largest Spanish companies receives in just one year. As Oxfam Intermón reports in the report “Wage Gap in Large Companies”, this income gap sets new standards in the country’s internal pay gap and is responsible for the highest inequality recorded in the Spanish corporate environment between senior management and the general workforce.
The organization states that, on average, the highest salary in a large Spanish company exceeds the average salary of its employees by 111 times. The media company Oxfam Intermón highlights in its analysis that companies such as Prosegur, Inditex and CIE Automotive stand out due to the clearest differences. At Prosegur, the CEO received a salary 395 times higher than that of an average worker in 2024; At Inditex the ratio was 364 to 1 and at CIE Automotive it was 319 to 1. According to Oxfam Intermón, the report ranks Spain among the European countries with the largest internal pay gap in its large companies.
The study shows that around 38% of listed companies pay their top executives more than five million euros annually and that 7.5% reach amounts of more than ten million euros per year. According to Oxfam Intermón, in 2024 the salaries of executives at Iberdrola, Banco Santander and Inditex reached 14.2 million, 13.8 million and 11.2 million euros, respectively. The media points out that these figures demonstrate a sustained increase in senior executive compensation compared to previous years.
The report also includes an analysis of the compensation of the boards of directors of the country’s most important companies. According to Oxfam Intermón, around 15% of these establishments receive an average salary of more than one million euros. In addition, a third of large companies grant their board members remuneration that also exceeds one million euros annually.
According to Oxfam Intermón, the average salary in large companies when remunerating general employees is 63% higher than the average salary at national level. However, the organization clarifies that the internal inequality within these companies is much more pronounced than the aggregate inequality reported in the country’s macroeconomic statistics.
The document addressed the general salary situation that affects the majority of workers in Spain. According to Oxfam Intermón, half of the employees do not exceed an annual income of 24,124 euros, which is one and a half times the cross-sector minimum wage. At the same time, 30% of the workforce is below a threshold that is considered sufficient to afford an adequate standard of living.
The analysis highlights the gender pay gap. According to Oxfam Intermón, women employed in large Spanish companies will be paid 8.16% less in 2024 than their male colleagues in equivalent positions. When the entire wage bill is taken into account, the difference increases to 18.2%. The report directly links this situation to the low proportion of women in the highest paid leadership positions, a phenomenon that reflects the national reality where the gender pay gap is close to 19%. As a result, the organization argues, female workers should work an extra hour and a half a day to match the earnings of men in comparable jobs.
In the report, Oxfam Intermón included positions from those responsible for the organization. Miguel Alba, responsible for “Private Sector and Inequality” and lead author of the study, stated that “it is disappointing that companies considered economic leaders still harbor an evil such as gender pay discrimination and do not guarantee equal pay conditions,” as specifically cited in the report. Alba stressed that large corporate groups in Spain could introduce similar governance and remuneration standards as in other countries on the continent.
As part of the proposals highlighted in the report, Oxfam Intermón recommends setting a maximum ratio of 20 to 1 between the highest salary and the average salary in each company. The organization claims that limiting these differences would slow the growth of internal imbalances and promote a more equitable distribution of profits and benefits. It also proposes to strengthen transparency through the obligation to publish salary indicators and to carry out independent audits.
In addition, the document recommends further development of measures that improve working conditions and reduce the gender gap. Among the suggestions, it is proposed to integrate governance models where employees are involved in decision-making and profit distribution. According to Oxfam Intermón, this would promote more democratic business models based on experiences gained in other European environments.
The analysis argues that the current unequal distribution of income in large corporations limits the overall scope of economic growth and limits its potential for social benefit. Oxfam Intermón emphasizes that these structural differences in wealth distribution prevent economic successes from being passed on to the majority of those who contribute to their creation. The report concludes with recommendations aimed at introducing reforms in the criteria for resource distribution within companies and introducing external controls and greater transparency mechanisms in order to achieve a more equitable distribution of wealth both in the business environment and in Spanish society as a whole.
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