Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 341

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 341
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 retention or prohibition from exercise of at least one year from their delivery.                                                                                                                                              |

Annual report 2024 323

| Contents |     | Business model and strategy |     | Sustainability statement |     | Corporate governance |     | Economic and financial review |     | Riskmanagement and compliance |

6.4 Directors' remuneration policy for 2025, 2026 and 2027

Remuneration policy principles and remuneration system

A. Directors' remuneration in their capacity as such

Director’s remuneration is regulated by article 58 of Banco Santander’s Bylaws and article 33 of the Rules and regulations of the board of directors. For 2025, 2026 and 2027, no changes to the principles and composition of directors’ remuneration for supervisory and collective decision-making duties are planned with respect of those in 2024. They are described in sections 6.1 and 6.2 .

B. Executive directors' remuneration

Executive directors are entitled to be paid the remuneration (e.g., salaries, incentives, bonuses, severance payments for early

termination from such duties, and amounts to be paid by Banco Santander for insurance premiums or contributions to savings schemes) deemed appropriate for performing executive functions following a proposal from the remunerations committee and by resolution of the board of directors, subject to the limits set by law.

C. Shareholder engagement

In response to the lower-than-usual support our 2024 remuneration policy proposal received in the 2024 annual general meeting, we engaged with a significant portion of our shareholders and proxy advisors to discern and address any concerns related to remuneration. These engagement efforts are described in greater detail on the introduction section of this chapter.

As a result of these conversations, the remuneration committee proposed several changes to the remuneration structure of the executive directors for the 2025 incentive award and beyond, as well as updates to our disclosure:

| Key issues raised by shareholders                                                                                                                                                                                            |     | Actions taken in response                                                                                                                                                                                                                                                                                                                                                                                                       |
| →Investors expressed their wish to increase the weight of the long-term components of variable remuneration.                                                                                                                 |     | •First, to provide even greater alignment with shareholders,the portion of variable remuneration paid in equity will be increased from 50% to 60%. In this regard, in 2025, for executive directors, variable remuneration will be paid 40% in cash and 60