Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 350

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 350
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 before the board meeting at which executive directors’ bonus is agreed. D) Deferred variable pay subject to long-term objectives As indicated above, the amounts deferred in 2029, 2030 and 2031 will be paid on the condition that the group achieves its long-term targets for 2025-2027, in addition to the terms described in section E).

Annual report 2024 328

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

As advanced in section B) on the principles of the remuneration policy, the long-term targets are: A. Relative performance of Banco Santander's total shareholder return (TSR) in 2025-2027 in respect of the weighted TSR of a peer group comprising 9 credit institutions, with the appropriate TSR ratio based on the group’s TSR among its peers.

| Ranking of Santander TSR                              |     | 'TSR Ratio' |
| The 100thpercentile                                   |     |         1.5 |
| Between the 75thand 100thpercentiles  (not inclusive) |     |    1 – 1.5A |
| Between the 50thand 75thpercentiles  (not inclusive)  |     |    0.5 - 1A |
| Less than the 50thpercentile                          |     |           0 |

A. Proportional increase in TSR coefficient within this bracket of the scale according to the number of positions moved up in the ranking. TSR 7 measures the return on shareholders’ investment. It is the sum of the change in share price plus dividends and other similar items shareholders can receive during the period. The peer group comprises BBVA, BNP Paribas, Citi, Credit Agricole, HSBC, ING, Itaú, Scotiabank and Unicredit. B. Banco Santander’s consolidated Return on tangible equity (RoTE) target in 2027. The RoTE ratio for this target is obtained as follows:

| RoTE in 2027 (%) |     | ‘RoTE Ratio' |
| ≥ 18.5%          |     |          1.5 |
| ≥ 17% but <18.5% |     |     0 – 1.5A |
| < 17%            |     |            0 |

A. Straight-line