Santander boosts variable compensation

Santander awarded 19 employees more than £1 million in 2012 and increased its variable compensation pool.

According to the bank’s Annual report 2012, Ana Botin, chief executive officer of Santander, received £3.957 million in performance-related and annual salary payments in 2012, down from £4.068 million in 2011.

In 2012, Botin received a base salary of £2.093 million and a paid element of £728,000, which was split between cash paid now worth £364,000 and a deferred compensation payment of £1.093 million in 2012, which is equally split between cash and share-based reward. This portion of Botin’s remuneration package is and dependent on her continued employment at Santander Group and will be paid in three equal installments in 2014, 2015 and 2016.

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Botin’s variable pay has decreased by 27%, in line with Santander Group’s overall performance because she is bench-marked not just for the UK’s contribution, but for the group as a whole.

Also 80% of her remuneration is deferred.

The annual report also revealed:

  • Finance director Stephen Jones received £1.259 million in performance related payments and annual pay.
  • In total, Santander’s executive directors received £8.949 million in 2012, up from £7.686 million in 2011.
  • The bank’s non-executive directors were awarded a total of £1.116 million in 2012, up from £1.071 million in 2011.
  • Variable compensation, consisting of cash bonuses, share awards, long-term incentives and other discretionary one-off awards, totaled £12.056 million in 2012 for key management personnel, up from £10.188 million in 2011.
  • Variable compensation for other code staff increased in 2012 to £11.801 million, up from £7.779 million in 2011.

A spokesperson for Santander said: “Santander UK delivered a strong performance in 2012, and our pay reflects this.  

“The bank continued to increase lending to SMEs [small and medium-sized enterprises], up by another 18%, and we have made good progress on our goals to improve customer service, satisfaction and increase the number of people who have a primary current account relationship with the bank”