Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 354

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 354
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 from the application of the malus policy (see section 6.3 B v): Final annuity = Amt. x (5/10 x A + 3/10 x B + 2/10 x C) where: • 'Amt.' is one third of variable remuneration deferred conditional on performance (i.e. Amt. will be 13.33% of the total incentive set in early 2026). • 'A' is the TSR ratio calculated as the scale in the table above, according to the relative performance of Banco Santander’s TSR within its peer group in 2025-2027. • ‘B' is the RoTE coefficient according to the scale in the table above, based on RoTE at year-end 2027.

• ‘C’ is the coefficient resulting from the sum of weighted coefficients for each of the four sustainability targets for 2027 (see section (c) above). • In any event, if the result of (5/10 x A + 3/10 x B +2/10 x C) is greater than 1.25, the multiplier will be 1.25. The estimated maximum amount to be delivered in instruments to executive directors is EUR 11.5 million. Lastly, to verify compliance with these long-term objectives, the board, following a proposal from the remuneration committee, may adjust them to remove the effects of any regulatory change to its calculation rules or any extraordinary circumstances (such as impairments, corporate transactions, share buybacks or restructuring procedures) that have occurred which affect the suitability of the metrics and achievement scales established in each case and resulting in an impact not related to the performance of the executive directors and executives being evaluated. E) Other terms of the incentive Payment of the deferred amounts (including those linked to long-term targets) will occur only if they remain in the Group and none of the circumstances triggering malus clauses arise (as per the malus and clawback section in the Group’s remuneration policy) under terms similar to those indicated for 2024 (detailed in section 6.3 B v)), policy expanded in 2023 to adapt it to the new regulation of US Securities Exchange Commission. Furthermore, the Group can claw back paid incentives under the scenarios, period and terms and conditions set out in the remuneration policy. Hedging the value of Santander shares received during the retention and deferral periods is expressly prohibited. The effect of inflation on the deferred amounts in cash may be