Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 348

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 348
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 costs (so when rates come down, earnings are not depressed); and iv. the inclusion of RoRWA SVA (shareholder value added) in the quantitative assessment, removing RoTE from the scope, to increase alignment with shareholders. 2. A qualitative assessment with the same four components of previous year, which address regulatory requirements and the needs and concerns of our shareholders: risk and compliance, network collaboration, sustainability matters and a relative performance assessment against the market in the main financial metrics. As stated in section 6.3.b, the metrics in the qualitative assessment are measurable, objective, audited and important to executing the long-term strategy of the company. The range of adjustment related to the risk and compliance and network collaboration categories has been modified (from +/-5% in the 2024 variable remuneration framework to +/-10% in 2025) to further reinforce risk adjustments within the bonus scheme and collaboration within the Group due to its relevance for the current strategy. 3. An exceptional adjustment that must be duly supported and may involve changes owing to control and/or risk deficiencies, negative assessments from supervisors or unexpected material events.

| Quantitative metrics |     | `+/- |     | Qualitative assessment |     | ?+/- |     | Exceptional adjustment |

Accordingly, the proposed quantitative metrics and weightings are:

| Category                           |     | MetricsA                                  |     | Weighting |
| Transformation:                    
 Weight: 45%                        |     | Active customers (growth)                 |     | 10%       |
| Cost per active customer           |     | 15%                                       |     |           |
| Fees over costs (recurrence ratio) |     | 20%                                       |     |           |
| Capital                            
 Weight: 25%                        |     | Capital generation                        |     | 25%       |
| Sustainable profitability          
 Weight: 30%                        |     | RoRWA (Return on risk-weighted assets)SVA |     | 30%       |

A. For this purpose, these metrics may be adjusted upwards or downwards by the board, following a proposal from the remuneration committee, when inorganic transactions, material changes to the Group’s composition or size or other extraordinary circumstances (such as impairments, extraordinary impacts of macroeconomic environment, regulatory changes or restructuring processes) have occurred which affect the suitability of the metric and achievement scale established in each case and resulting in an impact not related to the performance of the executive directors and executives being evaluated.

And finally,