Goirigolzarri: "Excellence in corporate governance is key for the sustainability of a project"

• 'A robust corporate project that aspires to stand the test of time must necessarily be based on strong and independent corporate governance'
• Bankia complies with all recommendations of the CNMV Good Governance Code that apply to it

Bankia chairman José Ignacio Goirigolzarri today declared that 'a robust corporate project that aspires to stand the test of time must necessarily be based on strong and independent corporate governance'.

In his talk at the 'Fourth Annual Director's Forum', organised by KPMG, the IESE business school and the daily newspaper El País, he stated that 'it hardly believable for a project to be sound and last in time without excellent corporate governance composed of independent and professional individuals'.

These arguments hold for all companies, but all the more so for Bankia 'given our past and our shareholder structure', observed Goirigolzarri, who explained the improvements carried out in this regard over the last four years. He revealed that 'the Bankia Board is absolutely determined to continue this line of improvement because we are convinced that excellent corporate governance is indispensable for the sustainability of our project'.

All these advances since the arrival of the new Board in May 2012, the Bankia chairman underscored, have allowed the bank to now be in full compliance with each and every one of the recommendations of the CNMV Good Governance Code that apply to it, and to have the best corporate governance of the sector in Spain, according to the report from the specialist firm ISS Quickscore, which, moreover, gave the bank the highest possible score.

Goirigolzarri described how Bankia in 2012 replaced the entire Board of Directors, which is now composed of 11 directors, including eight independents and three executive directors. 'My aim was always to have individuals with the best reputation and proven experience', he added.

That year also saw a simplification of the structure of investees and their boards, and it was decided that all directorships would thenceforth to be held by executives of the bank, with the per diems being paid to Bankia. The Group thus shed 800 directorships and has saved seven million euros per year.

Lead Director

In October 2013, the bank created the position of lead independent director, held by Alfredo Lafita until this past April, when he was replaced by Joaquín Ayuso. 'This director is considered particularly useful in companies headed by an executive chairman, because the function of the lead director is to coordinate and ensure that the voices of the independent directors are heard. As such, he stands as a counterweight to the chairman', Goirigolzarri explained.

Amongst the advances achieved in recent years, the chairman also emphasised that directors are very active on Board committees and that an annual assessment is made of the suitability of its members, who must be individuals of recognised commercial and professional standing and reputation, have the appropriate knowledge and experience to perform their functions, and be prepared to carry on good governance of the bank.

In addition, in 2015 changes were made to the Board of Directors Regulations to incorporate the latest recommendations of the Good Governance Code of Listed Companies. A Responsible Management Committee was also set up, supervised by the Board and guided by the following principles: creation of value; transparency and good governance; ethics and integrity; respect for human rights; active listening and dialogue; clarity, simplicity and understanding; recognition and respect; responsible procurement policies with suppliers; climate change and social commitment.