Ana Botín has refused to pay the rescission clause of Andrea Orcel as CEO of Santander. The entity, in a surprising and unusual decision of its board of directors, has reversed in the appointment of the Italian banker as number two of the bank, announced last September and that was going to be effective from January 1 of this year, considering that it was unaffordable to compensate him for the bonus of more than 50 million euros that he would have lost by leaving the Swiss bank UBS, the financial group for which he worked.
Santander had set an annual remuneration for Orcel similar to the one perceived as CEO José Antonio Álvarez, which with this step back will remain in his post. In addition, the contract that was being negotiated included a compensation to Orcel for the deferred remunerations that had been assigned to him in his previous post at UBS and which he would have lost when leaving the Swiss giant, which according to market sources amounted to more than 50 million euros and that Santander, based on the calculations it had made and as reported in a press release, was planning to reduce
Santander was confident that UBS would assume a part, since being banks focused on different activities, Santander in commercial banking and UBS in investment, Orcel would not be a competitor for the Swiss group. However, this entity decided not to take charge of any amount of that millionaire bonus, so that its compensation would have fallen entirely in Santander. "The board believes that it would be unacceptable for a commercial bank like Santander to face the cost of hiring a person, even if it is at this level and in this path, 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 ", the bank has justified.
So things, Santander has decided to keep the current CEO, José Antonio Álvarez, in his position, and keep the vice president of the group that was going to ascend with the arrival of Orcel. While I was walking, Rodrigo Echenique, whose retirement had precipitated the previous changes and whose position as president of Santander Spain was going to occupy Alvarez, will continue with his until he is appointed a successor, for which the group has already opened a selection process to close it in March.