Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 157

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 157
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SG incentive schemes.

The proposed parameters to assess ESG performance aim to reward progress with our main ESG metrics and embedding ESG in our management, as shown below:

| Inclusive Culture                    |     | Progress with inclusive culture and other initiatives such as accessibility.                                                                |
| Financial inclusion                  |     | Progress with financial inclusion targets and other key initiatives in the social agenda (financial education, community investment, etc.). |
| Sustainable finance                  |     | Progress with sustainable finance and socially responsible investment.                                                                      |
| Climate                              |     | Progress with our transition plan and the key levers to fulfil our net zero ambition.                                                       |
| Governance and cross-cutting matters |     | Conducting our double materiality assessment, implementing sustainability policies, and enhancing data efficiency and quality.              |

2024 Pillar 3 Disclosures Report 231

| Index |     | Introduction |     | Capital |     | Risks |     | Risk taker's remunerations |     | Appendices |

In 2024, shareholders at the AGM passed a board resolution on sustainability metrics for executives’ 2024-2026 long-term incentives (with a weighting of 20%), which are consistent with our public targets. Half of the sustainability dashboard covers supporting the transition to a low-carbon economy, including socially responsible investment and green finance raised and facilitated. Moreover, this line of action considers the requirement to develop a transition plan that enables a score of over 100%. Achieving a credible and comprehensive plan will depend on the regulatory and political landscape. The executive directors’ variable remuneration consists of a single incentive scheme, linked to the achievement of short-and long-term objectives. It is structured as follows: • The final amount of variable remuneration will be set at the start of the following year (2026) based on the target bonus amount and subject to compliance with the annual objectives described in the annual report. • 40% of the incentive will be paid immediately once the final amount has been set, and 60% will be deferred in equal parts paid out over five years and subject to long-term metrics: ◦ The amount deferred over the first two years (20% of the total) will be paid in 2027 and 2028 on the condition that no malus clauses described in the annual report. ◦ The amount deferred over the next three years (40% of the total) will be paid in 2029, 2030 and 2031, on the condition that no malus clauses