Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 108

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 108
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14.3 billion in employee wages and benefits 39 . To comply with EU regulations on remuneration and manage risk correctly, we identified 1.246 employees subject to a deferred variable pay scheme because their decisions can have a material impact 40 on Santander's results. Therefore, the majority of them are subject to a policy of deferral of a significant portion of their variable

compensation (ranging from 40% to 60%, depending on their level of responsibility) for a period of four to seven years. This variable compensation is paid out 50% in shares and 50% in cash, and is subject to a possible reduction (malus) or recovery (clawback).

| For more information on adequate salaries, total remuneration ratio, seeSN 7.3 'Employees'. |

Equal pay Our remuneration practices promote a non-discriminatory salary management in terms of gender and equivalent remuneration, especially in those cases where employees perform the same or similar work (equally remunerated for equal work or work of equal value). Our salary comparison between women and men who perform similar functions remains at c. 0, which confirms our positive performance in recent years and meets the ambition we set for 2025 41 . In certain jurisdictions we continue to periodically assess compensation levels for pay equity and where appropriate make adjustments to compensation. We often consult our employees to gauge how appropriate and acceptable our remuneration policies are and they recently deemed our remuneration policies competitive.

| For more information about the employee consultation process, refer to section3.1.4.'Our listening strategy'. |

Rating on satisfaction and opinion on compensation

| 7.8(out of 10) 
 Fair pay42     |     | 7.6(out of 10)              
 Fair compensation process43 |

MyContribution MyContribution is our common performance management model. We update it regularly, and it is aligned with our culture. 177,081 Santander employees had their performance reviewed ( 86% of the total 44 ) under this model in 2024. These reviews include quarterly or annual quantitative variables; corporate behaviour assessment variables (TEAMS) based on feedback from peers and internal customers; and risk management variables (RiskPro), which enable us to analyse individual and team performance holistically.

37 Other compensations that complement the salary of our employees: benefits, pensions, other fixed compensations, incentives, and short or long-term variable compensations.

38 Climate goals account for