Banco Santander must compensate the CEO from Unicredit, Andrea Orcel, with 68 million for having withdrawn the offer that would have made him CEO of the Spanish institute in 2019. This was reported by international press agencies.
According to the Madrid court that dealt with the case, in fact, the offer presented by Santander must be considered a valid contract, which the institute did not respect by deciding not to continue with the appointment of Orcel. The compensation would cover the signing bonus for the buyout clause, two years’ salary and moral damages.
Orcel had asked for $ 76 million in compensation, claiming he also lost millions of dollars in deferred compensation from UBS, his previous employer.
“Valid contract”
Judge Javier Sanchez Beltran declared the contract of 24 September 2018 between Santander and Andrea Orcel valid, thus condemning the Iberian institute to pay the current CEO of UniCredit a compensation of 68 million for breaking it by deciding not to continue with the appointment of the banker to chief executive officer.
How do you get to 68 million
This is what is stated in the ruling, which calculates the amount by recognizing Orcel 17 million as a signing bonus, 35 million to cover long-term incentives, 5.8 million for two years of the target remuneration and 10 million for moral and reputational damages. . According to the judge, Santander’s breach of the contract was “unilateral and unjustified”.
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