Senior Executives and Compensation in Spain

Legal structure for executive roles, remuneration and risk

We advise companies on senior executive employment matters in Spain, covering contracts, legal classification, remuneration, incentives, restrictive covenants, termination and related employment and tax implications.

Our work aligns each structure with the executive’s functions, responsibilities, autonomy and role within the organisation.

Senior executive employment under Spanish law

Senior executive arrangements in Spain require analysis beyond the job title. We assess functions, authority, reporting lines and autonomy to define the correct legal classification, contract and compensation structure.

Core senior executive and compensation matters

We advise on:
  • Senior executive contracts
  • Management and director service agreements
  • Legal classification of executive roles
  • Ordinary employment versus special senior executive relationships
  • Fixed and variable remuneration
  • Annual and long-term incentive plans
  • Bonus and commission schemes
  • Equity and share-based compensation
  • Benefits, allowances and executive perquisites
  • Restrictive covenants and non-compete clauses
  • Confidentiality and intellectual property provisions
  • Good leaver and bad leaver clauses
  • Termination rights and severance
  • Executive disputes and litigation
  • Employment and tax implications of remuneration structures

Executive contracts and legal classification

The legal classification of a senior role determines the applicable rights, obligations and termination regime.
We assess the executive’s real functions, degree of autonomy, reporting structure, decision-making powers and position within the company before defining the appropriate contractual framework.

Remuneration and incentive structures

Executive compensation should support performance without creating unnecessary legal or financial exposure.
We advise on fixed salary, variable remuneration, annual bonuses, long-term incentives, commissions, retention mechanisms and benefits, including the conditions for accrual, payment, reduction and recovery.

Equity and long-term incentives

Share-based compensation and long-term incentive plans require coordination between employment, corporate and tax considerations.
We advise on the employment law aspects of share options, phantom shares, restricted units, carried interest and other incentive structures, including vesting, leaver provisions and treatment on termination.

Restrictive covenants and protection of the business

Senior executives frequently have access to strategic, commercial and confidential information.
We draft and review confidentiality, post-contractual non-compete, non-solicitation, exclusivity and intellectual property clauses, ensuring that their scope, duration and compensation are legally robust.

Termination and executive exits

The termination of a senior executive relationship may involve contractual, employment, corporate and reputational considerations.
We advise on notice, severance, bonus entitlement, incentives, restrictive covenants, release agreements, negotiation strategy and litigation risk.

Cross-border senior executive arrangements

Where a senior executive works across jurisdictions, the Spanish employment position must be aligned with the wider group structure.
As founding members of L&E Global, Suárez de Vivero coordinates employment law advice with leading firms in more than 30 countries, supporting companies on international executive appointments, compensation structures and cross-border exits.

How we support the process

Assessment

Functions, responsibilities, autonomy, reporting lines and legal status.

Structure

Contractual framework, remuneration model, incentives and protective clauses.

Implementation

Contract drafting, plan documentation, approvals and executive communication.

Review

Changes in role, remuneration, termination, disputes and ongoing compliance.

When to involve employment counsel

Employment counsel should be involved before the executive role, contract or remuneration package is finalised.

 

Early involvement is particularly important where the position includes broad decision-making authority, international responsibilities, variable remuneration, equity incentives, board functions or complex termination provisions.

Senior Executives and Compensation FAQs

How is a senior executive classified under Spanish law?

Classification depends on the executive’s actual functions, powers, autonomy, reporting structure and position within the organisation, rather than job title alone.

It should regulate duties, powers, remuneration, incentives, confidentiality, restrictive covenants, termination rights, severance and other conditions specific to the role.

Yes. Bonus schemes, commissions, share options and other incentives can be used, provided their terms, conditions and employment and tax implications are properly structured.

Before appointment, promotion, contract signature or implementation of a new remuneration plan. Early advice helps ensure the correct classification and reduce future disputes.

Corporate restructuring requires precision before action

We advise companies on the employment law strategy, negotiation, implementation and defence of restructuring processes in Spain.
Barcelona
Plaza Europa, 9-11, 15 D
Torre Inbisa
08908 Barcelona
Madrid
Príncipe de Vergara 62
1º Derecha
28006 Madrid