By Jesús Aguado

MADRID, Reuters -Spain’s Santander (MC) announced Thursday that Jose Antonio Alvarez, the Chief Executive Officer of Spain’s Santander Bank (MC), will now report to its board exclusively as part of a restructuring in its corporate governance and accelerating its digital transformation.

Alvarez reported previously to Ana Botin (who will retain her executive position).

Many Spanish lenders have a chairman who is responsible for strategy and the CEO manages day to day business.

The euro-area bank supervisors favor a split of the roles of the Chairman and CEO. Sound governance is one of their top priorities.

Santander announced other changes in its operation structure as a way to speed up its digital transformation. This is a strategy by lenders to combat competition from internet-based entrants, while maintaining ultra-low rates of interest.

Botin would supervise new units in tech, PagoNxt, and Digital Consumer Bank. Santander’s countries and regions would remain under the control of Alvarez.

A lender stated that it will propose German de la Fuente (previously with consultancy Deloitte) as an independent director to shareholders at the April 1 shareholder meeting.

It said that the bank will pay its final cash dividend at 5.15 euros per share. In addition to a cash dividend paid of 4.85 euros per share, and an 865 million euro share buyback against 2021 earnings it announced.

The total capital that would be distributed to shareholders is therefore around 3.4 Billion Euros.

The shareholders would be asked to authorize a 10% reduction in outstanding shares. This could include cancelling any future acquisitions, as well as potential repurchase programs.

($1 = 0.8991 euros)