Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Santander’s UK chair William Vereker has resigned, exposing a rift with the bank’s Spanish parent and its executive chair Ana Botín, according to people familiar with the matter.
Vereker, who has served as chair of the Spanish lender’s UK business since 2020, previously informed the board that he had intended to step down later this year, according to one of the people.
The bank announced Vereker’s departure on Tuesday after the FT approached Santander with a request for comment.
His departure comes as Santander explores a number of strategic options for its UK business, which could include a potential exit from the British retail market, the Financial Times previously reported.
Vereker, a former senior executive at UBS and business envoy of ex-prime minister Theresa May, had clashed with the group’s leadership in Madrid over governance and resourcing, the people familiar with the situation said.
Botín has sometimes seen the UK board as obstructive, according to two people familiar with the Madrid-London dynamic. Another person familiar with the bank said that power at Santander was “very centralised” in Madrid.
As a subsidiary overseen by the Bank of England, Santander UK is required to have a board that is separate from the group, with key positions filled by independent directors.
Vereker’s exit will create another headache for the Spanish lender, which is struggling to boost returns at the UK unit relative to some of the group’s other markets and is also facing exposure to a British court ruling about the possible mis-selling of car loans.
The UK unit’s balance sheet has shrunk in recent years, with total assets falling from £315bn in 2017 to £275bn at the end of September.
