Executive Committee

According to Article 18 of By-Laws, the Executive Committee must be composed of 5 to 7 administrators, including its President. Currently, the Executive Committee consists of 7 members, appointed by the Board of Directors on 16 April 2015, for the four-year term (2015-2018) which ends on 31 December 2018.

Powers and Operation

Powers

The Executive Committee is responsible for the day-to-day management of the Company in line with the strategic guidelines defined by the Board of Directors and the powers delegated also by the Board of Directors, that can be consulted here.

In order to ensure effective and efficient monitoring by the non-executive members of the activity of the Executive Committee and to facilitate the related duty to inform, a range of mechanisms were adopted. The calls and minutes of the meetings of the Executive Committee are sent to the Chairman of the Board of Directors and to the Chairman of the Audit Board.

Notwithstanding the collective exercise of the Executive Committee´s powers, a functional allocation, among the members of the Executive Committee, of areas of action in respect of the business and activities of the Company and of its controlled or subsidiary companies, was approved.

Operation

Pursuant to the Regulations of the Board of Directors, the Executive Committee shall approve, at the beginning of each term, the rules that define the principles and rules of the organization and its operation, which can be found here.

In accordance with the Regulations of the Executive Committee, the Executive Committee must meet once a week and meets validly if the majority of its members are present. The respective decisions are made with the votes of the majority of directors attending.

In 2018, the Executive Committee held 47 meetings, 4 by electronic vote, with the presence of 95,44% of its members.

The performance of the executive directors is evaluated based on fulfillment of certain economic, financial and operational objectives, as defined annually in the Remuneration Policy submitted by the Remuneration Committee and approved by the General Shareholders Meeting.

Board executive member’s remuneration as set in the Remuneration Policy for 2018, involves three main components: fixed remuneration, annual variable remuneration and three-yearly variable remuneration.

The remuneration of Galp’s directors includes all remunerations due for posts held on corporate bodies in other Group companies.

The Remuneration Policy for 2018 establishes that, in case of a judicial decision for unlawful action against one or more members of the Executive Committee that results or has resulted in a restatement or an impairment of the financial statements in terms detrimental to the Company, the Remuneration Committee may request the Board of Directors to adopt the adequate measures for the clawback of an amount of the variable remuneration paid to said member(s) that is deemed appropriate in relation to the relevant period of said unlawful action.The Remuneration Policy for 2018 establishes that, in case of a judicial decision for unlawful action against one or more members of the Executive Committee that results or has resulted in a restatement or an impairment of the financial statements in terms detrimental to the Company, the Remuneration Committee may request the Board of Directors to adopt the adequate measures for the clawback of an amount of the variable remuneration paid to said member(s) that is deemed appropriate in relation to the relevant period of said unlawful action.

The total and individual annual amount of remuneration received by the members of the Board of Directors during each financial year, as set by the Remuneration Committee, is provided in the Corporate Governance Report 2017.