The mega salary of 7.5 million euros for 2021 granted to Andrea Orcel? Per “guarantee the right level of competitiveness e attraction for a senior executive“. A few days before the shareholders’ meeting of 16 April called to renew the new board of directors which will see the official entry of the successor of Jean Pierre Mustier, UniCredit replies to the written questions of the shareholders (answers posted on the bank’s website) they have asked for further clarification on a subject that, after the position taken by the proxy advisor, risks the rejection by the shareholders of the funds, numerous in the capital from public company of UniCredit, in hand for 80.72% to foreign shareholders.
The rejection would give a clear signal to the new summit e some historical partners like CariVerona Foundation and old acquaintances of the group such as the former vice president Fabrizio Palenzona they are trying to avert the outcome.
The pay structure planned for 2021 for “Orcel is strictly linked to the first year of the mandate and is aimed at ensuring the right level of competitiveness and attraction for a high-level executive “, explained the bank, reiterating what is already known about the future remuneration of the former Ubs banker, remuneration which will be defined in detail only after the approval by the shareholders of the group remuneration policies: variable remuneration equal to 200% of the fixed remuneration (2.5 million) and, for 2021, transformed into a bonus in shares unrelated to performance. In all 7.5 million euros from April to December.
For Orcel, in each house, “there is a fixed remuneration defined between the market median and the top quartile of UniCredit’s European peer group, made up of 14 banks”. According to the proxy advisor, Glass Lewis e Iss, the salary is “excessive” as the variable part, five million (twice the fixed amount of 2.5 million) is unrelated to performance objectives in the first year. The mission that awaits Orcel, however, is, as also remembered last week by CariVerona, one of the demanding ones: relaunch the profitability of the group which recorded a sharp decline in revenues, bringing it back to the best levels of the sector in Europe.
On strategies, UniCredit announced that “the current plan (Team 23, ndr) will in any case be updated to take into account the new macroeconomic scenario-context and any further strategic actions “, as probably new acquisitions, lever that Mustier had decided not to operate. “Covid-19 has triggered a change in the mentality, behavior and needs of customers”, the bank found, indicating that “the digitization path already undertaken with Transform 19 and strengthened with Team 23 intensely engages the group with the aim of providing services based on innovative technologies and simpler and safer processes “.
“The constant strengthening of our technological infrastructure, in terms of evolutionary updating and stability, represents – explained the bank in Piazza Gae Aulenti – a central pillar of the group’s development strategy”. Furthermore, “as part of the overall strategy, UniCredit has a clear ESG roadmap that adheres to the highest global standards and is also committed to protecting natural capital and providing sustainable financing solutions.” In this sense, “a long-term path aimed at defining a new ESG strategy has been launched. It represents a key component of a broader review of the current strategy”.