Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 342

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 342
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% in instruments, the latter whose long-term valuation replicate the interests of our shareholders. The portion they will receive in instruments is split as follows: 
 i.EUR 500 thousand and EUR 420 thousand in PagoNxt, S.L. RSUs for Ana Botín and Héctor Grisi, respectively.                                                                                                                                                                                                                                                                                                                     
 ii.The rest, all in shares of Banco Santander.                                                                                                                                                                                                                                                                                                                                                                                  
 •Second,to strengthen the long-term vision and value creation of the company,the percentage of variable pay subject to long-term metrics will be increased from 36% to 40%.                                                                                                                                                                                                                                                     
 •And third,to increase the alignment with shareholders return,we have increased the weight of the relative TSR long-term performance metric from 40% to 50%.                                                                                                                                                                                                                                                                    |
| →Investors viewed favourably that we had increased the minimum relative TSR (rTSR) vesting from 33rdpercentile to 40thpercentile. Still, several indicated a preference for no vesting below median peer performance levels. |     | •Starting with the 2025 awards, we haveincreased the minimum vesting threshold for rTSR from 40thpercentile to 50thpercentile.                                                                                                                                                                                                                                                                                                  |
| →Some investors raised how executive remuneration levels are determined.                                                                                                                                                     |     | •Santander hasenhanced the remuneration disclosuresto provide further detail on our Committee’s process for setting the Remuneration Policy.                                                                                                                                                                                                                                                                                    
 •This report containsfurther explanationsdetailing how executiveremuneration is setandhow pay is aligned with performance, including the peer selection criteria for this analysis. Santander follows a rigorous process that includes anannual review of comparative market datato ensure our pay remains competitive in the marketplace.                                                                                      |

Annual report 2024 324

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

The remuneration committee proposes to maintain the current long-term performance metrics, thus prioritizing shareholder returns and the Group's profitability in the long-term, as well as the sustainability of the balance sheet and its activities and how we carry them out. Therefore these metrics will continue to be:

• Relative performance of Banco Santander's total shareholder return (TSR) compared to our peer group. Its weight is increased from 40% to 50% of the total.

• Return on tangible equity (RoTE),