In 2021, the Contentious Chamber of the National Court ruled that Juan Arena’s compensation payment for his dismissal as president of Bankinter in 2007 was a “remunerative donation” granted voluntarily. The Supreme Court has now upheld this ruling, agreeing that the evidence presented by Bankinter was not sufficient to demonstrate that the expense was appropriately related to the generation of income or results of the company.
The events date back more than 17 years when Arena departed from Bankinter and was replaced by Pedro Guerrero. The compensation included a payment of nearly 14 million euros in addition to stock options, a pension, and other benefits. The Tax Agency began an inspection of the firm’s accounts in 2012, questioning the nature of the compensation provided to Arena.
Bankinter argued that the compensation was for providing strategic advice and not competing with the entity for a certain period. However, the Treasury questioned whether these services were actually carried out and whether they were excessive. The Supreme Court highlighted that the compensation was decided unilaterally by the Bank’s Board of Directors and lacked a legal, statutory, or contractual basis.
Juan Arena had a long history with Bankinter Group, serving in various roles before his departure in 2007. The Supreme Court concluded that
