In key news on Spanish stocks, Banco Santander, S.A. (ES:SAN) has reportedly trimmed around 320 positions in the U.S. as part of its efforts to prioritize digital operations. As per Bloomberg, the job cuts amount to roughly 2.7% of Santander’s U.S. workforce, primarily affecting its retail operations.
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The bank clarified that it is currently in the process of transforming its U.S. operations and enhancing its digital capabilities to meet the evolving customer demands.
Banco Santander, or Santander, is one of Spain’s oldest financial institutions, catering to over 160 million customers worldwide.
Santander Faces Potential Rebellion
Separately, Santander might face potential shareholder rebellion. Last week, the bank announced shareholder rewards of €5.5 billion through a combination of increased dividends and share buybacks, aimed at bolstering investor confidence. Santander announced a final dividend of €0.095 per share for 2023, bringing its total payout for the year to €0.176. This marks a 50% increase from the previous year’s dividends. Additionally, it initiated a €1.5 billion share buyback plan, effective February 20, 2024.
Despite the enhanced returns, Santander may encounter a shareholder revolt at its upcoming annual general meeting on March 22. The proxy advisory firm ISS has recommended investors to vote against the new compensation package of executive chair Ana Botín.
Santander has raised the compensation of Botín and its chief executive, Héctor Grisi, by 5% this year, on the back of its strong results in 2023. However, ISS has highlighted its concerns about the alignment of pay and performance. ISS’s objection specifically focuses on Botín’s base salary, which is set to increase from €3.27 million to €3.43 million. Botín’s total compensation increased by 4.3% last year, totalling €12.2 million.
Are Santander Shares a Good Buy?
According to TipRanks’ analyst consensus, SAN stock has a Moderate Buy rating. The stock has a total of 10 recommendations, of which three are Buy. The Santander share price forecast is €4.82, which is 24.6% higher than the current price level.
