Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 316

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 316
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 a preference, in order to avoid vesting below median peer performance levels.

3. The weight of relative TSR within the long-term metrics has increased from 40% to 50%.

4. Long-term metrics application has increased from 36% of total variable remuneration to 40%, to reinforce long-term value creation in the company.

Additionally, Santander has enhanced its public remuneration disclosures to provide further detail on our Committee’s process for setting the Remuneration policy.

In response to feedback from investors, this reports also contains further explanations on how we set executive remuneration and

Annual report 2024 307

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

align pay with performance, including the peer selection criteria for this analysis. Banco Santander follows a rigorous process which includes an annual review of comparative market data to ensure our pay remains competitive in the marketplace (section 6.3). We believe these changes further strengthen the alignment of management and shareholders’ interest. 6.1 Principles of the remuneration policy Directors' remuneration in their capacity as such The board of directors sets the individual remuneration of directors (including executive directors) for the performance of supervisory and collective decision-making duties within the amount fixed by shareholders and commensurately with the roles they perform on the collective decision-making body, their committee membership and attendance, and other objective circumstances the board might consider. Remuneration of directors for executive duties Banco Santander’s remuneration policy for executive duties (which also generally applies to Banco Santander employees) dictates that:

| 1 |     | Remuneration must be in line with shareholders and customers' interests, conducive to creating long-term value and compatible with our rigorous risk management, long-term strategy and values, as well as with maintaining a sound capital base. |
| 2 |     | Fixed remuneration must make up a significant proportion of total compensation.                                                                                                                                                                   |
| 3 |     | Variable remuneration must reward performance for achieving individual, business unit and, as the case may be, Group targets.                                                                                                                     |

| 4 |     | The global remuneration package and its structure must be competitive in order to attract and retain talent.                                                                                                                                                                                          |
| 5 |     | Remuneration decisions must be free of conflicts of interest and discrimination of any kind different from that based on the performance assessment of objectives