Santander Halves Top Execs' Pay to Finance Coronavirus Fund; Reviews 2020 Dividend
March 24 2020 - 2:43AM
Dow Jones News
By Cristina Roca
Banco Santander SA said late Monday that its senior management
has taken a pay cut to finance a newly created fund to help fight
the coronavirus, and that it will review its 2020 dividend to make
sure it has more flexibility during the pandemic.
The fund is initially expected to be worth at least 25 million
euros ($26.8 million) and will provide essential materials and
equipment, the Spanish lender said.
Santander Executive Chairman Ana Botin and Chief Executive Jose
Antonio Alvarez will take a 50% cut to their total compensation,
meaning salary and bonus, for 2020, the bank said. Non-executive
directors will take a 20% cut.
The bank's board has also decided to consolidate all dividend
payments from 2020 earnings into one final dividend to be paid in
May 2021. This means no interim dividend will be paid in November
this year.
This decision will give the bank the flexibility to maximize
lending and support businesses and people in need, it said.
Santander said it still meets the capital requirements to
maintain its current dividend policy of a 40%-50% payout ratio.
Write to Cristina Roca at cristina.roca@dowjones.com;
@_cristinaroca
(END) Dow Jones Newswires
March 24, 2020 02:28 ET (06:28 GMT)
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