Banco Santander has informed the National Securities Market Commission (CNMV) that it will review the dividend it pays its shareholders this year to provide itself with financial "flexibility" in its particular fight against the coronavirus.

The entity directed by Ana Botín tries to reassure investors by ensuring in a statement sent late in the afternoon that it has the capacity to maintain its investor remuneration policy, which currently establishes the distribution of between 40% and 50% of the benefit.

However, the council indicates that it will review this payment "in order to have all the necessary resources to support companies and private clients who need it."

For now, Santander simply points out that this year it will carry out the remuneration of its shareholders in a single payment by suppressing the payment of the interim dividend for the month of November.

But Botín does not want to burden solely on the shareholders his measures against the coronavirus. For this reason, the president of the bank and the CEO will see their annual remuneration reduced by 50% and the rest of the directors by 20% to save 25 million euros , which will go towards the creation of a fund for the purchase of sanitary material.

The adjustment will also affect top management. "The bonus policy will be reviewed to ensure that the greatest possible resources are devoted to helping our clients," explains the note sent to the financial regulator.

"For many of us, the coronavirus pandemic is the most important challenge that we have faced in our lives. The magnitude of the task before us requires a huge collective effort, in which governments, central banks and others authorities, the private sector, charities and individuals work together to limit the spread and provide care to those affected, either directly or indirectly, "says the president of the bank.

Santander has already announced a series of measures to protect and support its employees and clients, including: emergency liquidity lines for struggling SMEs; payment moratoriums in some markets or branch closures to protect employees while ensuring continuity of service throughout the business network.

The entity communicated to the regulator last week that it estimates a reduction of its profit of 5% in the event that the fall in economic activity is followed by a vertical recovery in the form of a V in the coming months.

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  • Santander
  • Coronavirus
  • Covid 19

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