Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 321

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 321
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 the latest developments in the banking industry. • To monitor banks with similar size, performance, geographic footprint, business model and strategy. • To identify outliers and best practices across the sector. Market Cap (EUR bn) at 2024 closing date iii) Performance-based Pay and alignment with shareholder value Our remuneration programme mainly focuses on paying for performance, with a significant portion of each executive's remuneration at-risk. Additionally, variable pay outcome depends on the achievement of performance targets that align with our corporate strategy and lead to enhanced value for our

Annual report 2024 311

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

shareholders. The main purpose of this incentive programme is to incentivise long-term value creation.

In this sense, for year 2024:

• 61% of our Executive Chair’s total compensation is performance-based and 57% of our CEO`s total compensation is performance based.

• 36% of our executive director’s total variable remuneration is subject to long-term metrics that include relative TSR, return on tangible equity and other sustainability metrics and therefore strengthen the alignment of our executive director’s interests with the shareholder’s interests in the long-term. This will increase from 36% to 40% in year 2025.

• Additionally, 50% of their variable remuneration is delivered in the form of equity instruments (mainly Banco Santander S.A. shares), with this portion to be increased up to 60% in year 2025.

Targets related to performance metrics are intended to be challenging, with payout levels established after considering upside/downside scenarios, sensitivity analysis and year-over-year growth comparisons, to ensure rigorous alignment of payouts to performance.

iv) How we include sustainability metrics in the variable incentive scheme

The current remuneration policy incorporates mechanisms that link variable remuneration to the achievement of financial, sustainability, and value creation objectives. These objectives are specific, measurable, and aligned with the bank's interests, encompassing environmental, social, and governance (sustainability) factors. For further details, please see section I.

#### v) Summary of executive remuneration composition
The policy on directors’ remuneration for executive duties in 2024 was approved by the board of directors and put to a binding vote at the 2024 AGM, with 74.8% votes in favour. The table below summarizes the main items of