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Madrid - Banco Santander named Ana Botin as its new head on Wednesday after her father Emilio's sudden death, making her one of the top women in banking and continuing her family's century-old management of what is now the eurozone's biggest lender.
Botin, who recently restructured Santander's UK division ahead of a probably stock market listing, had long been tipped to take over from Emilio, who turned the bank during his 28 years at the helm from the small domestic lender run by his father into a global financial institution.
The succession by the fourth generation of the family happened sooner than expected, after Santander announced earlier on Wednesday that Emilio had died at the age of 79 from a heart attack.
READ: Santander chair Emilio Botin dies
Now, his daughter, aged 53 and a longtime investment and retail banker who speaks five languages, will be under pressure to do at least as well.
She will navigate the bank through an upcoming industry health check by the European Central Bank which experts say it should pass. Longer term, investors expect her to boost the profitability of the bank to sustain its hefty dividend, in addition to seeking new markets.
"The appointments and remuneration committee considered Ana Botin is the most appropriate person, given her personal and professional qualities, experience, track record in the group and her unanimous recognition both in Spain and internationally," the bank said following a board meeting.
Botin's appointment is viewed as controversial by some who contest the family's longtime management of the bank, even though they now own only 2% of its shares.
READ: Portugal in €4.9bn rescue of troubled bank
The implosion of Portugal's Banco Espirito Santo bank, whose founding family's holdings are being investigated for financial irregularities, has also cast a pall over corporate dynasties.
"Succession shouldn't just be saying 'my daughter's going to take over'," said a corporate governance expert at a global asset manager which owns Santander shares, speaking on condition of anonymity before Ana Botin's appointment.
But many said Botin, who has spent most of the last 25 years at Santander, would provide welcome continuity at a bank whose low-risk profile and international expansion helped protect it from southern Europe's recent crippling economic downturn.
"The key issue is whether or not family control is a good or a bad thing. Ultimately this depends on individuals and his (Botin's) daughter is a chip off the old block," said Philip Saunders, co-head of multi-asset at Investec Asset Management.
"More often than not, family control or strong influence tends to bolster long termism which is particularly important in a banking context given that banks typically behave in an overly pro cyclical manner and destroy shareholder value as a consequence," he said.
With Ana Botin now chairing the group, a gap is left at Santander's UK arm just as it prepares for a separate share market listing.
UK Finance Director Nathan Bostock has been lined up as her replacement, but he only joined a month ago. The UK arm is also looking for a new chairperson.
