Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 349

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 349
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 to the result obtained above, we add or subtract the qualitative assessment according to this table:

| Qualitative assessment |     | Weight  |
| Performance vs. Market |     | +/-10%  |
| Compliance and Risk    |     | '+/-10% |
| Network collaboration  |     | '+/-10% |
| Sustainability targets |     | +/-5%   |

Lastly, as additional conditions for determining the incentive, the following circumstances must be confirmed to set variable pay: • If the Group’s ONP for 2025 were 50% less than in 2024, variable pay would in no case exceed 50% of the benchmark incentive for 2025. • If the Group’s ONP were negative, the incentive would be zero. When setting individual bonuses, the board will also consider restrictions to the dividend policy imposed by supervisors. C) Forms of payment of the incentive Variable remuneration of executive directors will be paid 60% in instruments, split as: • the amount of PagoNxt RSUs set for each year (which cannot exceed 10% of their variable pay); and • the rest, all in shares of Banco Santander. One portion will be paid in 2026 and the other will be deferred for five years and contingent on long-term metrics: a) 40% of variable remuneration is paid in 2026 net of tax, with 50% in cash and 50% in instruments. b) 60% paid, if applicable, in five parts in 2027, 2028, 2029, 2030 and 2031 (net of tax), with 33% in cash, 67% in instruments, under the conditions stipulated in section E). This is explained in more detail in the table "2025 award" at the beginning of this 6.4 section. The final three payments, which weight has been increased from 36% of variable remuneration to 40%, will also be subject to long-term objectives described in section D) below. Shares shall be subject to a three-years retention period, unless the executive directors already hold shares for an amount equivalent to 200% of their fix annual remuneration -in which case the regulatory one year retention period will apply. Under the remuneration policy, the maximum number of shares will be calculated based on the daily volume-weighted average of the weighted average Santander share price in the 50 trading sessions before the last Friday (not included)