Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 686

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 686
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 of permanence in the Group, according to the following accrual scheme: • The accrual of the first and second parts (instalments in 2026 and 2027) is conditional on none of the malus clauses being triggered. • The accrual of the third, fourth and fifth parts (instalments in 2028, 2029 and 2030) is linked to non-concurrence of malus clauses and the fulfilment of certain objectives related to the 2024‑ 2026 period. These objectives and their respective weights are: – Banco Santander’s consolidated Return on tangible equity (RoTE) target in 2026 (weight of 40%). – Relative performance of Banco Santander's total shareholder return (TSR) in 2024-2026 in respect of the weighted TSR of a peer group comprising 9credit institutions, with the appropriate TSR ratio based on the group’s TSR among its peers (weight of 40%). – Foursustainability metrics, which have different weighting (with a total weight of 20%). The degree of compliance with the above objectives determines the percentage to be applied to the deferred amount in these threeannuities, with a maximum achievement ratio of 125%, so executives have the incentive to exceed their targets. Both the immediate (short-term) and each of the deferred (long-term and conditioned) portions are paid 50% in cash and the remaining 50% in instruments. The accrual of deferred amounts (whether or not subject to performance measures) is conditioned, in addition to the permanence of the beneficiary in the Group, to non-occurrence, during the period prior to each of the deliveries, of any the circumstances giving rise to the application of malus as set out in the Group’s remuneration policy in its chapter related to malus and clawback. Likewise, the amounts already paid of the incentive will be subject to clawback by the Bank in the cases and during the term foreseen in said policy, and in accordance with the terms and conditions foreseen in it. Malus and clawback clauses are triggered by poor financial performance of Banco Santander, a division or area, or exposures from staff as a result of an executive(s)’s management of, at least, one of these factors: i. Significant failures in risk management committed by the entity, or by a business unit or risk control. ii. The increase suffered by the entity or by a business unit of its capital needs, not foreseen