April 11, 2021

Santander will pay up to 120,000 euros in bonuses to managers to promote digital transformation | Economy

Santander will pay up to 120,000 euros in bonuses to managers to promote digital transformation | Economy

The Santander will propose to the shareholders meeting on April 12 the creation of a bonus of 30 million euros for up to 250 employees, with the aim of attracting and retaining talent that achieves "key digital milestones" to accelerate the digital transformation of the group.

This payment is 120,000 euros per head. The retribution will be linked to a series of milestones in the digital transformation of the bank, which will be selected annually. The money will not be given in cash, but in shares and over several years, applying the clauses malus (for which the right to collect a pending money is lost) and clawback (the company can claim what was paid), according to the document published on the occasion of the meeting.

This incentive for digital transformation, which can not be perceived by the directors of the entity, seeks to attract and retain the best talent to advance, accelerate and deepen the digital transformation of the group and, in turn, encourage the creation of value to long term for the action.

According to the bank's documentation, the design of the incentive complies with the regulatory, internal risk and governance frameworks and does not entail the assumption of any undue risk, and provides elements of compensation that are competitive with the compensation systems offered by competing companies. with the Santander group for digital talent.

Santander has 19.9 million linked clients, at the end of 2018, and 32 million are digital (in Europe this figure is 7.7 million and 4.8 million are in Spain). Digital sales account for 32% of total sales and have doubled compared to 2015. Recently announced a contract with IBM to accelerate technological change.

Ex-Google sign-in

Santander announced on Monday the appointment of former Google CEO Aiaz Kazi as head of Plataforma, a newly created position from which he will support the transformation of the bank and lead the open platform of financial services. Kazi will report to Lindsey Argalas, responsible for Digital Technology and Innovation of the entity, explains the bank in a note.

The new signing, which will work from San Francisco (USA) with a global mandate, will deal with the bank's open financial services platform, in collaboration with the global technology division and with teams from the ten main markets in Europe and America.

Santander is taking "firm measures" to transform its culture, personnel and business in line with a new digital paradigm that is transforming the financial sector, he says in his documentation prepared for the shareholders' meeting.

Thus, the digital incentive is designed to "provide the group with a tool to attract and retain resources that lead to the creation of long-term value for the action, through the achievement of key digital milestones".

In parallel, the entity chaired by Ana Botín is developing new digital businesses, to support its core business and offer "disruptive products and services": Openbank (the 100% digital bank of the Group), which is born in Spain, is being exported to three other countries. OnePay Fx, is a payment solution based on blockchain and that allows retail customers in the United Kingdom, Spain, Brazil and Poland to make international transfers on the same day or the next day.

Superdigital, "is a low-cost financial solution, alternative to commercial banking, and aimed primarily at the unbanked population of Latin America." In Brazil and Argentina Superdigital allows users to make deposits, withdrawals and payments without having to hold a formal bank account. They must open a digital payment account with which they can operate in a matter of minutes. "It offers simple solutions and brings financial services closer to all users, including those who do not have access to a bank and those who reside in areas with little or no bank coverage," says the largest entity in the euro zone. In Chile Superdigital has signed an alliance with Amazon to manage purchases on its platform with Santander cards.

The Santander informs that in Spain, in the chapter of aid to families with problems to cope with the payment of their home, since 2011, has helped "more than 140,000 families with specific measures among which include: suspension of the eviction of 9,362 families, without any eviction since November 2012, payments in payment to 13,760 families, and more than 134,100 refinancing and restructuring of 112,300 families and 21,800 companies ".

In addition, to facilitate access to housing, Santander has contributed 1,000 homes to the Social Housing Fund, of which 963 are for rent. On the other hand, the entity claims to have in social rent other 568 homes with more affordable conditions for families in vulnerable situations.


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