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Madrid court reduces compensation awarded to Orcel to 43.4 million euros

February 06, 2023 at 05:23 am EST

MADRID (Reuters) - A Madrid court reduced by 8 million euros ($8.6 million) to 43.4 million euros ($46.8 million) the compensation awarded to Italian banker Andrea Orcel last year after Santander withdrew an offer to make him its CEO, a court document showed.

By Jesús Aguado

The judges reduced from 10 million to 2 million euros the amount granted to Orcel in moral damages but left the main remaining compensation unchanged, said the document seen by Reuters on Monday.

The ruling comes after Santander appealed against a court order to pay him 51.4 million euros.

The court also said in its ruling dated Jan. 20 that the offer letter from Santander to Orcel was a binding contract.

Santander was not available for a comment.

In one of banking's most high profile employment disputes, Orcel and Santander ended up in court after Spain's largest bank dropped plans to make the former UBS investment banker its CEO in January 2019 as a result of a disagreement over his pay.

($1 = 0.9287 euros)

(Reporting by Jesús Aguado; additional reporting by Emma Pinedo; editing by Andrei Khalip)

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Andrea Orcel

Mr. Andrea Orcel is Chief Executive Officer at UBS AG (London Branch) and UBS Ltd., and President-Investment Bank at UBS Group AG. He is on the Board of Directors at UBS Ltd. and UBS Americas Holding LLC. He became a member of UBS Group Executive Board in July 2012 and was co-CEO of the Investment Bank from July to November 2012. In January 2016, he was appointed Senior Officer Outside of Australia for UBS Australia Branch, and since December 2014, he has additionally held the position as Chief Executive for UBS Limited and UBS AG London Branch. He joined UBS from Bank of America Merrill Lynch, where he had been Executive Chairman Investment Bank since 2009, President of Emerging Markets (excluding Asia) since 2010 and CEO of European Card Services since 2011. Prior to the acquisition of Merrill Lynch by Bank of America, Mr. Orcel was a member of Merrill Lynch’s global management committee and Head of Global Origination, which combined Investment Banking and Capital Markets. He held a number of other leadership positions, including President of Global Markets & Investment Banking for Europe, Middle East and Africa (EMEA) and Head of EMEA Origination beginning in 2004. Between 2003 and 2007, he led the Global Financial Institutions Group, of which he had been part since joining Merrill Lynch in 1992. Mr. Orcel holds an MBA from INSEAD and a degree in Economics and Commerce, summa cum laude, from the University of Rome.

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