Spain: Repsol Vote of Confidence in CEO

Most of the directors were present for the vote, but conspicuously absent were the three representing Repsol’s leading shareholder – Sacyr Vallehermoso, which holds a 20.01 percent stake. That construction group’s board had voted unanimously not to attend the Repsol meeting because it considered it to have been hastily convened without respect for proper procedures, sources familiar with the matter.

Brufau convened the special board meeting so Repsol’s main shareholders could express any reservations they may have about his performance; in recent days, Sacyr President Pedro del Rivero has publicly criticized the chairman’s management of the energy company.

Media reports had indicated that Sacyr and Spanish bank La Caixa – Repsol’s second-leading shareholder with a 14.21 percent stake – were considering replacing Brufau because of their displeasure with some of his decisions, including slashing Repsol’s dividend and refusing to sell assets such as Argentine unit YPF.  La Caixa’s two board directors, Isidre Faine and Juan Maria Nin, personally attended the extraordinary meeting.

In a filing to Spain stock market regulators, Repsol said all of the directors participated in the meeting, “either personally or through representatives,” with the exception of those representing Sacyr Vallehermoso – Luis del Rivero, Juan Abello and Jose Manuel Loureda.  The note said the 13 directors at the meeting – 80 percent of the total – unanimously expressed approval for Brufau’s performance, ratified him as Repsol’s chairman and reaffirmed the company’s strategic plan.

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