July 14, 2020

Santander reviews its dividend and Botín reduces his salary by 50% due to the pandemic

Banco Santander has decided to review its dividend policy this year in the face of uncertainty due to the covid-19 crisis and has lowered the salary of its leadership, to half that of its president, Ana Botín, which will help it create a fund of 25 million euros to stop the pandemic.

The entity abolishes the traditional November dividend payment, which is charged to the current financial year, and bets on a single final payment that will arrive in May 2021 and whose amount will depend on the impact of the coronavirus crisis.

In addition, according to the information sent tonight to the National Commission of the Stock Market, Botín and the CEO of the entity, José Antonio Álvarez, will earn 50% less in 2020, both in fixed and variable salary.

The rest of the board of directors will also see their salary reduced, in this case by 20%, and the cuts will also go to the bank’s senior management, which will help create a fund for the entire group of “at least” 25 million for stop the covid-19 pandemic.

This background it will serve to provide medical material and equipment to help stop the spread of the virus, and may be fattened by the rest of the bank’s employees.

The contributions will be used to cover immediate needs, such as the production and acquisition of medical equipment, protective clothing and other equipment that are necessary to treat patients infected with the virus, as well as making donations to the corresponding authorities and institutions.

Santander’s board of directors explains that it has made the decision to review its dividend policy to provide the bank with the greatest possible flexibility to to be able to increase credit and support the needs of companies and individuals affected by the coronavirus pandemic.

The bank highlights that it “comfortably” meets the capital requirements to maintain its dividend policy, which involves distributing between 40 and 50% of results, in addition to “being comfortable” with the mattresses it has regarding the regulatory minimums required.

“For many of us, the coronavirus pandemic is the most important challenge that we have faced in our lives,” said Botín, who believes that the situation requires a huge collective effort to work together and limit the spread of the virus.

In addition, it is committed to providing care to those affected, either directly or indirectly.

“Difficult months await us, but I am confident in our ability as a society to overcome it and the bank will live up to it,” he added. EFE


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