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Santander reshapes employee bonus structure, cutting metrics from nine to six to align variable pay with its strategic plan

Executive summary: Santander announced that the variable remuneration for its staff will be based on six performance indicators instead of nine, applying to senior management while excluding branch and investment banking teams. The change tightens the link between pay and the bank’s strategic plan, aiming to increase clarity and accountability in incentive design.

Who is involved: Santander’s board and remuneration committee, senior management employees, and excluded branch and investment banking staff.

Likely next: The bank will monitor the impact of the revised metrics on performance and may adjust them in future cycles; other banks may review similar simplifications.

The bank announced that variable remuneration for its staff will now be based on six performance indicators instead of nine, applying to senior management while excluding branch and investment banking teams. The adjustment is intended to sharpen focus on strategic priorities and simplify the incentive framework. By narrowing the metrics, Santander aims to improve clarity and accountability in executing its medium‑term plan.

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