Ana Botín (Banco Santander) asks to eliminate the limits on the variable remuneration of bankers

2023-11-28 18:43:00

Ana Botínthe president of Santander Bankhas requested that the limits currently in force in the European Union on the variable remuneration of bankers be eliminated, as has already happened in the United Kingdom since last October.

This is what he pointed out Ana Botín in an interview published this Monday the 27th in the British newspaper ‘Financial Times’. The president of Banco Santander emphasizes that “It is a business in which you should be compensated variably, so I think it is good news for the sector, it makes a lot of sense.”

For Ana Botín, the lifting of bonuses for bankers in the European Union would be “positive” and would have better alignment with shareholders.

As a general rule, the European Banking Authority (EBA) maintains that bankers’ variable remuneration for achieving objectives cannot exceed 200% of their fixed remuneration. The option to exceed this ratio must be submitted to a vote of the shareholders, with a minimum quorum of 50% and a majority of 66%, which increases to 75% if less than 50% of the company’s voting rights are represented.

In another aspect, the president of Banco Santander has stated that the entity does not need acquisitions to improve its profitability in the United Kingdom, although she does not rule out the possibility of purchasing a small entity if the operation is advisable.

In addition, Ana Botín He indicated in the interview in the ‘Financial Times’ that «Strengthening our presence in the United States is essential, it is the deepest capital market in the world. “We need the talent to do that.” Banco Santander has hired nearly a hundred investment bankers, half from Credit Suisse, with the aim of growing in the United States.

Banco Santander’s plans for the 2023-2025 three-year period involve taking advantage of the large scale of its global businesses. Thus, for the investment banking area, it aims to grow 15% in revenue each year in North America, obtaining a global return on assets (RoTE) above 20%.