Sat. Mar 28th, 2020

Ángel Ron must return the 12.8 million of his departure from the Popular



The Court of First Instance number 47 of Madrid has given the reason to Banco Santander in a lawsuit against Ángel Ron, for which the former president of Banco Popular is required the return of 12.8 million of euros received as variable remuneration.

So, by the application of the clause «malus», Ron is required to reimburse his early retirement and Mapfre is condemned – entity through which the rental insurance policy is instrumentalized – to cancel the planned payment obligations and to return the amount of premium not consumed, increased with legal interests calculated from September 8, 2017.

This clause may involve a reduction of up to 100% of the variable remuneration pending payment in the event of significant failures in the management of the risk committed by the bank, that there is an increase in capital needs, that there are regulatory sanctions or convictions lawsuits for acts attributable to responsible personnel or for irregular conduct.

In the judgment, Banco Santander justifies this claim given that Banco Popular's own regulation contained the causes on which to apply the clause, among which were «the insufficient economic performance of the entity and the significant variation of the bank's economic capital» .

"Ultimately, the entity contemplated the possibility of reduction or recovery of the variables in case of negative results, not necessarily associated with negligent conduct of the recipients thereof," the ruling states.

The court He has also sentenced Ron to pay 13,093.92 euros corresponding to the remuneration charged in advance in the first quarter of 2017 without having effectively served as director since February 20, 2017, together with the legal interest accrued.

Likewise, the clawback clause has been applied, so that the former president of the resolved entity will have to pay the 215,546.33 euros charged in 2015 and 2016 for the variable remuneration corresponding to 2013 and 2014.

However, this resolution is not firm and against it it is possible to appeal against the civil sections of the Provincial Court of Madrid.

After the resolution of the entity, Santander decided to apply these clauses 'malus' and 'clawback' and demanded to Ron the collection of 12.8 million euros received as variable remuneration.

The payment of the amounts claimed by Santander Ron was outsourced in an insurance policy with Mapfre, so the entity filed a lawsuit against the former president of Popular and Mapfre Vida in November 2017, claiming that the insurer stopped paying the former manager Your early retirement

Specifically, he asked Ron to return € 13,093 corresponding to the compensation charged in advance in the first quarter of that year (he ceased as director on February 20), to pay € 215,546 of the variable remuneration of 2013 and 2014 charged by Ron in 2015 and 2016 when applying the clawback clause and that the zero reduction ('malus' clause) of the 2014 variable remuneration pending collection for 42,600 euros in cash and 10,216 bank shares be applied.

Likewise, Santander also requested that the recovery (clawback clause) of the amounts that the insurer paid to Ron since he ceased his duties be applied. Consequently, the group requested that the compensation for early retirement whose payment is implemented through the Mapfre policy be reduced to zero ('malus' clause).

. (tagsToTranslate) angel (t) popular

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