852019 ANNUAL AND CORPORATE RESPONSIBILITY REPORT

that establish defined contribution obli- gations for retirement contingencies and defined benefit obligations for disability and death. The proportion of employee

and company contributions are based on the professional level/category and the regular base salary (RBS) of each em- ployee:

The remuneration of the Board of Direc- tors is governed by the company s bylaws and the Nominations and Remuneration Committee s is responsible for reviewing and proposing the directors remune- ration which, in turn, is approved by the Board of Directors.

The remuneration received by the mem- bers of the Board of Directors for their directorships is an annual fixed amount, defined based on the duties discharged by the independent directors. In 2016 the Nominations and Remuneration Commi- ttee was assisted by an external consul- tant in the analysis of the structure and competiveness of the executive directors and the senior executives remuneration

policy and defined an action plan to adapt their remuneration to the desired struc- ture and levels, which is reviewed on a regular basis for validity. The remunera- tion structure of the executive directors and the senior executives is as follows: fixed remuneration, short-term variable remuneration, long-term variable remu- neration and benefits (including among others a pension plan, a vehicle, medi- cal insurance and life and accident insu- rance).

As Cepsa only has two shareholders, the decisions relating to remuneration are taken by the ultimate decision-making bodies of their investee.

Employee Group/Category % of RBS Employee % of RBS Company

Personnel covered by collective agreements 1.00 1.60

Technical executives and technical experts 1.25 2.00

Heads of department 2.00 3.00

Executives 3.00 4.50

Percentage contribution to pension plans