Santander hands CEO golden parachute

Giant Spanish bank Santander on Monday announced the resignation of its chief executive Alfredo Sáenz, who was convicted in 2011 for irregularities in a debt-recovery case.

Santander hands CEO golden parachute
Santander chief Alfredo Saenz will walk away from the lender with a healthy pension. Photo: Pierre-Phillipe Marcou/AFP

He will be replaced by Javier Marin, Santander's current head of insurance, asset management and private banking, said the bank, the eurozone's biggest by capitalization.

Sáenz will be eligible for a pension of close to €88.17 million, reported Spanish news site Te Interesa on Monday.

The lender gave no reason in its statement for the "voluntary resignation" of Sáenz, 70, who had been chief executive since 2002.

Sáenz was convicted in 2011 of lodging a false complaint against certain creditors in order to reclaim debts from them.

The case dated to 1994 when he was chairman of Banesto, a bank that was bought up that year by Santander.

In November 2011 the outgoing Socialist government commuted to a fine his initial sentence of three months jail and a ban from banking. But Spain's Supreme Court partially quashed that decision last week.

The bank said it had nearly quadrupled in size during his tenure, with assets growing from €358 billion ($468 billion) to €1.25 trillion.

"The board of directors expressed its recognition of and gratitude for Alfredo Sáenz' extraordinary achievements since joining the group," it said in a statement.

On Thursday, Santander announced poor than expected quarterly earnings for 2013.

Santander profits were down €1.205 billion year on year, reported Spanish business news site Cinco Días. 

Income for the group was also 9 percent down.

The business site said Latin America and the United Kingdom had been major stumbling blocks for the financial group.

Results in Brazil were 3.7 percent down in the first quarter of 2013, compared to the last quarter of 2012.

Meanwhile, overall results for Latin America year on year were down 18.2 percent and business in the United Kingdom was 23 percent lower.

Twelve percent of Santander's business is in Spain.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Spain’s Santander to shut UK branches as online banking surges

Santander is to shut almost one fifth of its British branches following a surge in online banking, the Spanish group said on Wednesday.

Spain's Santander to shut UK branches as online banking surges
Photo: AFP

Santander said it would close 140 branches, affecting 1,270 staff, of which about one third would be offered alternative roles in the company.

It meanwhile plans to retain 614 branches across the UK.

“The way our customers are choosing to bank with us has changed dramatically in recent years, with more and more customers using online and mobile channels,” said Susan Allen, head of retail and business banking at Santander.

“As a result, we have had to take some very difficult decisions over our less visited branches, and those where we have other branches in close proximity,” she added in Wednesday's statement.

Santander said that the number of transactions carried out via Santander branches had dropped by almost one quarter in the last three years.

Transactions via digital channels had doubled over the same period.

“We continue to believe that branches have a vital role to play and we will be refurbishing 100 of our branches over the next two years,” Allen added.