TheBoard of Directors of Banco Santanderhas decided not to proceed with the appointment ofAndrea Orcelas CEO, considering it unattainable to have to face in full the deferred bonus that UBS had committed to pay when it was 'signed' by the Cantabrian entity.
Specifically, as reported by the entity to theNational Securities Market Commission (CNMV), "the decision adopted is a consequence of the modification, after the negotiations, of the bases on which the council adopted the decision to appoint Mr. Orcel and the impossibility that the costs of compensating him for his past remunerations exceeded those taken into account when agreeing on the appointment. "
In this way,José Antonio Álvarez, current CEO of Santanderand that he was going to assume the executive presidency of Santander Spain and the vice-presidency of Santander when the arrival of Orcel materialized, will remain in his current position, in addition to assuming the position of vice president of the council. His appointment as president of Santander Spain is without effect.
For his part, Rodrigo Echenique will remain as president of Santander Spain as long asthe entity finds the right relief for this profile, pfor what has opened a selection process, and maintains the status of vice president of the council.
After these agreements, the vice presidents of the bank will be Bruce Carnegie Brown, Rodrigo Echenique and José Antonio Álvarez.
Thebonus deferred by Orcel and agreed with UBS round 50 million euros, according to the data of the annual report of the Swiss entity consulted by Europa Press. Finally, Santander and UBS have not reached an agreement to divide the cost of these emoluments.
Banco Santander announced the appointment of Andrea Orcel as the entity's new board member on September 25, which was a real upheaval in the sector, as it wasFirst CEO of the entity with international profile, which sparked speculation about a change of direction in the strategy of the Spanish financial giant and the euro zone.
Due to theirobligations with UBS Group, Orcel could not assume the position until March 2019, because a clause required six months' notice before working in another financial institution.
The intention of the group was for José Antonio Álvarez to remain in the position of CEO until such conditions were met and Orcel relieved him.
It would be then when Alvarez would assume the position of executive president of Santander Spain and vice-president of Banco Santander, replacingRodrigo Echenique, who would cease as vice presidentand he would maintain his position as a non-executive director.
However, the group has informed the CNMV on Tuesday that it will not continue with the appointment of Orcel and that, therefore,Álvarez will maintain its position as CEOof the entity chaired by Ana Botín.