Company: BCDRF
Filing Date: 2025-04-04
Form Type: 6-K
Source: 0000950103-25-004384
Chunk: 16

Company: Banco Santander, S.A.
Filing Date: 2025-04-04
Form: 6-K
Chunk 16
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| – | Significant errors in risk management committed by the entity or by a business or risk control unit. |

| – | An increase in the capital needs of the entity or a business unit that was not expected at the time the 
 exposures were generated.                                                                               |

| – | Regulatory sanctions or adverse court awards for reasons that might be attributable to the unit or to 
 the staff responsible for them. In addition, a breach of the entity’s internal codes of conduct.      |

| – | Improper conduct, whether individual or collective. Negative effects from the sale of unsuitable products 
 and the responsibility of the persons or bodies making such decisions shall be especially considered.     |

Additionally, the accrual of the third, fourth
and fifth Annual Payments (these Annual Payments, together, the “Deferred Portion Subject to Objectives”), whose weight has
been increased from 36% to 40% of variable remuneration, is subject to the achievement of certain targets referring to the 2025-2027 period
(the “Multiyear Objectives”) and to the metrics and achievement scales associated with such Multiyear Objectives, which are
those set forth below:

| A. | Relative performance of the Bank’s TSR for the 2025-2027 period compared to the weighted TSRs of 
 a peer group of 9 credit institutions.                                                           |

For these purposes:

| - | “TSR” means the difference (expressed                                                                                                          
 as a percentage) between the final value of an investment in ordinary shares of the Bank and the initial value of that investment, taking      
 into account that for the calculation of such final value, dividends or other similar items received by the shareholder due to such investment 
 during the corresponding period of time will be considered as if they had been invested in more shares of the same class on the first          
 date on which the dividend or similar item is payable to the shareholders and at the average weighted listing price on said date. To calculate 
 TSR, the average weighted daily volume of the average weighted listing prices for the fifteen trading sessions prior to 1 January 2025         
 (excluded) (for the calculation of the initial value) and for the fifteen trading sessions prior to 1 January 2028 (excluded) (for the         
 calculation of the final value) will be taken into account.                                                                                    |

| - | “Peer Group” means the group made                                                                                       
 up of the following 9 financial institutions: BBVA, BNP Paribas, Citi,