You will have recently seen Santander’s announcement about the new High Performance Bonus Scheme. While this scheme falls outside the formal negotiation framework for all unions, including Advance Union (AU), we are committed to being your informed and collective voice at work. To effectively represent you, we need to understand your feedback on these changes.

Why the Change?

Santander states this change is designed to:

• Better reward you through variable pay based on your individual performance.
• More closely link your bonus to your individual numerical rating score (from the globally aligned performance framework introduced in February). This will apply to the 2025 performance year, with bonuses payable in March 2026.
• Radically simplify the bonus structure, moving from approximately 18 different schemes to just one.

Bonus awards will also continue to be influenced by Santander’s overall company performance against key financial and non-financial metrics, which determines the total bonus pool available.

How Will the New Bonus Be Calculated?

The calculation involves a few key elements:

1. Reference Bonus: Every role will have a set “reference bonus,” which is a percentage of your base pay and is aligned to the market rate for your job.
   • You’ll be able to find your specific reference bonus percentage on Workday from the end of June.
2. Adjustments: This reference bonus is a starting point. It can then be adjusted up or down based on:
   • Santander’s overall company performance.
   • Your individual performance (specifically, your “position in range” rating of 1-3).

Understanding Market Rate & Your Bonus

• Market Rate: Santander defines the market rate for your salary as your pay range (80% to 120% of the mid-point for your role).
• Your Bonus Calculation: Crucially, your individual bonus amount will be calculated as a percentage of your actual salary, not just the market rate mid-point.

Key Questions & Advance Union’s Actions

We know you’ll have questions, and we’ve already been raising key points with Santander:

• Can I appeal my “position in range” (1-3 rating) as it directly impacts my bonus?
  • Advance Union has strongly insisted that members have the right to appeal their specific “position in range” rating, not just their overall performance rating, because of its direct link to variable pay.
  • Santander has not yet provided a clear position on this.
  • AU strongly believes you should have this right to appeal, and we will continue to push for this.
• Will I know how my rating impacts my bonus payment before the appeal window closes?
  • This is a significant concern. Based on provisional timelines, it appears the window for appealing your rating will likely close before you are informed of the actual monetary impact your rating will have on your bonus.
  • Advance Union is challenging this and seeking greater transparency for members during the appeal process.

What About the Impact on Average Bonus Payments?

We were keen to understand how these changes might affect members’ variable pay. Santander has informed us that they have reviewed the scheme to ensure impacts are minimal, stating that your final bonus outcome will be more dependent on your final performance rating. Advance Union will be monitoring this closely.

Where Can I Find More Information from Santander?

• Your manager should be discussing these changes with you in the coming weeks.
• From the end of June, your reference bonus percentage will be available on Workday.
• Santander has launched a “2025 Bonus Hub” which includes FAQs, a toolkit, and an explanatory video. We encourage all members to review these resources.

Your Voice Matters: Share Your Feedback with Advance Union

As mentioned, Advance Union does not formally negotiate bonus arrangements. However, Santander has engaged with us on these changes and has committed to ongoing dialogue. It is through this engagement that we can ensure the bank understands our members’ collective voice and concerns.

To help us effectively represent you, please send all your feedback, questions, and concerns regarding the new High Performance Bonus Scheme to feedback@advance-union.org

Please note: While we will read and collate all feedback to inform our discussions with Santander, we do not propose to respond to each email individually. We will provide collective updates to members through our usual communication channels. Your input is invaluable.

Thank you for your continued membership and engagement.

Sincerely,

The Advance Union Team