Santander chief Ana Botin overhauled the management of the euro zone's biggest bank on Tuesday, turning the page after her father's 28-year leadership and giving the lender a younger, more international profile.

The decision to oust CEO Javier Marin and replace him with chief financial officer Jose Antonio Alvarez was welcomed by investors as a sign Botin, 54, was putting her stamp on a business that has recently been hit by a crippling five-year economic downturn in its home market.

The new management team, which starts January 1st, now needs to show that their bank can cut costs and build up capital, while holding its top position in Europe and expanding in new markets like the United States and Eastern Europe.

A key part of the overhaul aims to answer big international investors’ concerns that Santander’s board was not independent enough. The bank also announced on Tuesday that two long-standing independent directors would resign and be replaced by two new directors, and a new position of lead independent director was created for Bruce Carnegie-Brown, 54. Carnegie-Brown had been seen as a front-runner for the position of chairman of the UK business.

His new role sees him effectively independent chief of board members, a position some banks have started to created in the aftermath of the financial crisis and which is meant to foster accountability.

"The changes at Santander are a clear message from Ana Patricia to say 'I'm in charge' and to show who is holding the reins. She is implementing change at all levels of the bank," said Enrique Quemada, CEO of investment bank ONEtoONE. "The appointments make the board more international and involve promoting people who have worked with her in the UK, like Bruce Carnegie-Brown."

Santander shares had risen 1.83 per cent to 7.22 euros by 1330 GMT.

Reuters