MILAN: UniCredit's new Chief Executive Andrea Orcel will receive up to 7.5 million euros ($9 million) in annual pay, based on his fixed salary and variable compensation, documents posted on the Italian bank's website showed.
Orcel, the former head of investment banking at Swiss bank UBS, is embroiled in a legal tussle with Santander after the Spanish bank two years ago withdrew its offer to make him CEO after a disagreement over pay. A hearing on the case was postponed due to the coronavirus crisis from Wednesday and rescheduled for April 7.
From UniCredit, Orcel will receive an annual fixed salary of 2.5 million euros alongside variable remuneration worth up to twice that amount in shares, according to documents released before UniCredit's annual meeting.
For 2021, the variable remuneration, which is usually related to performance, will not depend on performance, UniCredit has said. The Italian bank has not disclosed precisely how much that variable compensation would be this year.
Santander's offer to Orcel was withdrawn over a dispute about how much the Spanish bank would pay him to make up for remuneration he would have received from UBS. Orcel and Santander disagree over whether its initial offer was binding.
In joining another employer, UniCredit, Orcel relinquishes any deferred payments that would have been due from UBS.
UniCredit has said Orcel's package would not include any remuneration to compensate him for the possible reduction or cancellation of remuneration deriving from previous employment.
Former UniCredit CEO Jean Pierre Mustier, who stepped down in February, cut his fixed pay by 40% to 1.2 million euros when he joined the bank in 2016 to preside over a restructuring.
Mustier cut his salary last year by a quarter due to the COVID-19 crisis and gave up his variable remuneration worth 2.4 million euros. News on Friday that Deutsche Bank paid its CEO Christian Sewing 7.4 million euros in 2020, up 46% from a year earlier, prompted a backlash from unions and politicians. UniCredit is Italy's only lender deemed of global systemic importance by regulators.