November 26, 2020

Santander refuses to sign Andrea Orcel as CEO for its "unacceptable cost" | Economy

Santander refuses to sign Andrea Orcel as CEO for its "unacceptable cost" | Economy



On September 25, Santander announced that it had signed as CEO to Andrea Orcel (Rome, 1963), but has decided to reverse this appointment. This Tuesday the bank chaired by Ana Botín has announced that it does not register the top executive of the investment bank UBS because it would have to compensate him with a too high sum, estimated at more than 50 million euros. He has decided, "at the proposal of the appointments and remuneration commissions, to cancel the appointment of Andrea Orcel as the group's CEO," he said in the note.

"The decision adopted is a consequence of the modification, after the negotiations, of the bases on which the board adopted the decision to appoint Orcel and the impossibility that the costs of compensating the latter for their past remunerations exceed those taken into account. when agreeing on the appointment, "he said in a statement to the securities regulator.

In a subsequent press release, the group admits that "the board considers that it would be unacceptable for a commercial bank like Santander to face the cost of hiring a person, even if it is outside this level and this trajectory in light of the values ​​of the entity and the responsibility it has with its stakeholders and the societies of the countries in which it operates. "Therefore, he says that in this context, the council considers that" it would not be appropriate to continue with the appointment. "

After this rectification, Santander will continue counting on José Antonio Álvarez as the group's CEO. When the change was announced in September, the bank said that Álvarez would become number three in the group, since it would occupy the vice-presidency of the board of directors and would be president of Santander Spain to replace Rodrigo Echenique. For now, Echenique will remain as president of Santander Spain until March and Álvarez will maintain the position of vice president of the council.

Echenique "plans to cease in his current position of president of Santander Spain in March, will continue in the same until the appointment of his successor and will maintain the status of vice president of the board of Banco Santander.After these agreements, the vice-presidents of Banco Santander will be Bruce Carnegie Brown, Rodrigo Echenique Gordillo and José Antonio Álvarez Álvarez, "explains the bank in its statement.

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