Telefonica: Management Remuneration Not Tied To Share Price

MADRID -(Dow Jones)- The current remuneration plans for Telefonica's top managers aren't tied to the telecommunications company's share price, a top Telefonica official said Friday.

Speaking on the final day of the company's two-day annual meeting with investors and analysts in Valencia, eastern Spain, Julio Linares, managing director for coordination, business development and synergies, said that remuneration is currently related to the financial targets set by the company.

Linares also said that Telefonica has no plans to drop the Movistar brand - now used by mobile unit Telefonica Moviles in Spain and Latin America - and adopt the O2 brand for the whole group.

"Today, we prefer to keep the Movistar brand for Spain (and Latin America) and the O2 brand for other European countries," he said.

Telefonica is the largest telecom in Spain and Latin America by number of subscribers.

Company Web site: http://www.telefonica.com

-By David Roman, Dow Jones Newswires, 34 913958125, david.roman@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 26th May 2006