Balance Sheet at 31 December 2010 of BBVA

Equity-instrument-based employee remuneration
BBVA has a variable multi-year remuneration scheme in place as part of the remuneration policy established
for its executive team. It is based on the award of Bank shares that are instrumented through annual
overlapping medium- and long-term programs. These consist of allocating individuals theoretical shares
("units") that at the end of each program are converted into real BBVA shares, provided certain initially
established conditions are met, with the number depending on a scale linked to an indicator of value
generation for the shareholder, and dependent on the individual performing well during the period the
program is in operation.
At the conclusion of each program, the final number of shares to be granted will be equal to the result of
multiplying the initial number of assigned "units" by a coefficient on a scale of between 0 and 2, which is
linked to the movement of the Total Shareholders Return (TSR) indicator. This indicator measures the return
on investment for shareholders as the sum of the revaluation of the Bank's shares plus dividends or other
similar concepts during the period of each program/plan by comparing the movement of this indicator for a
group of banks of reference in Europe and the United States.
Below are the main features of each of the equity-based remuneration schemes currently in force.
Multi-Year Variable Share-Based Remuneration Plan for the BBVA Executive Team
The beneficiaries of these programs are the members of the Bank’s executive team, including executive
directors and the BBVA’s Management Committee members (see Note 50):
• 2009-2010 program
The Bank’s AGM on March 13, 2009 approved the 2009-2010 Program, with a completion date of
December 31, 2010.
As of December 31, 2010, the total number of “units” assigned to the beneficiaries of this program was
4.786.334.
Once the 2009/2010 Program period was completed, the TSR for BBVA and the 18 reference banks was
then determined; given the final positioning of BBVA, it resulted in the application of a multiplier ratio of 0
to the assigned units, the Program will be settled without the allocation of shares to the beneficiaries.
• 2010-2011 program
The Bank’s AGM on March 12, 2010 approved the 2010-2011 Program, with a completion date of
December 31, 2011.
This program incorporates some restrictions to granting shares to the beneficiaries after the settlement.
These shares are available as follows:
- 40 percent of the shares received shall be freely transferable by the beneficiaries at the time of
their delivery;
- 30 percent of the shares are transferable a year after the settlement date of the program; and
- 30 percent are transferable starting two years after the settlement date of the program.
As of December 31, 2010, the total number of “units” assigned to the beneficiaries of this program was
2.355.680.
During the period of operation of each of the schemes mentioned above, the sum of the commitment to be
accounted for at the date of the accompanying financial statements was obtained by multiplying the number
of "units" assigned by the expected share price and the expected value of the multiplier ratio, both estimated
at the date of the entry into force of each of the schemes.
The cost of these programs/plans is broken up throughout their operational life. The expense associated in
2010 and 2009 for those programs/plans reached €18 and €7 million, respectively. It is recognized under the
heading “Personnel expenses – Other personnel expenses” in the accompanying income statements, and a
balancing entry has been made under the heading “Stockholders’ funds – Other equity instruments” in the
balance sheets, net of tax effect.
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