how sour have things been? By Reuters

MADRID (Reuters) – Santander (MC 🙂 The Spanish bank has been ordered by the Madrid court to pay Italian banker Andrea Orcel 67.8 million euros ($ 76.40 million) for her retirement as CEO.

Santander has handed down a verdict more than three years after Orcel, one of Europe’s most well-known investment bankers and now the CEO of UniCredit in Italy, announced its intention to become CEO.

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WHEN DID IT START?

On September 25, 2018, Santander announced the appointment of Italian banker Andrea Orcel as its new CEO to replace Jose Antonio Alvarez and said the appointment would take effect in early 2019 after approval of the regulations.

Santander said Orcel will bring a deep understanding of retail and commercial banking, as well as a strong track record in managing multiple teams, and help build a global digital platform.

FIRST REACTIONS

Analysts at the time said it was difficult for them to understand why Orcel, head of the UBS Group’s investment banking business since 2014 and a member of the bank’s management since 2012, would become chief executive of a retail bank.

His appointment immediately raised doubts about a possible change in Santander’s strategy.

President Ana Botin responded that Santander did not plan major strategic changes and would continue to be a commercial one, instead of becoming an investment bank.

SANTANDER WITHDRAWS ORCEL’S OFFER

Orcel resigned from UBS and was given a six-month gardening license after signing a job offer letter from Santander.

But on January 15, 2019, Santander withdrew its offer to become Orcel’s CEO, giving it an unexpected turn at such a high-level appointment.

Santander said the cost of compensating Orcel for the delayed awards it has won over the past seven years at UBS and other benefits would be significantly above the original expectations of the nomination board.

Santander offered Orcel a senior adviser in March last year to try to fix the barriers, which he rejected, according to a source familiar with the matter.

ORCEL Files Civil Case in Madrid Court

At the end of June 2019, Orcel demanded € 112 million from Santander for breach of contract in a civil lawsuit.

Orcel’s claims were based on a four-page letter – signed by Santander General Secretary Jaime Perez Renovales in September – in which the bank formally offered him a job along with a package of shares and bonuses to compensate for the risk of losing UBS.

The package amounted to a “maximum” of € 55 million that Orcel would receive from UBS in the coming years.

NEW LARRAK

After more than two years on the side of European finance, Orcel returned to executive life in early 2021 when he was appointed CEO of Italian UniCredit. He then demanded compensation of around 112 million euros for 68 million while he was taking office. a new job.

EXHIBITION

Orcel and Botin faced off in May this year when the case finally reached the courts. Botin stated that the offer had never been a contract and that the commission had not accepted Orcel’s compensation offer.

The public hearing ended in October, when Axel Weber, the president of UBS, made it clear that the Swiss bank would not pay Orceli any delayed compensation if it allowed him to join a Spanish rival.

($ 1 = $ 0.8875)