A Madrid choose has lowered by €16.4m the compensation to be paid by Santander to Andrea Orcel over the Spanish financial institution’s abortive try to rent the Italian as chief government.
An amended ruling on Friday ordered Santander to pay Orcel €51.4m, down from the €68m determined final month. The judgment additionally mentioned that quite than obtain the total quantity in money, Orcel would obtain €18.6m of the overall in Santander shares over seven years based mostly on the financial institution’s normal metrics for long-term incentive plans.
Last month’s ruling within the Madrid court docket dropped at a head a long-running dispute between Orcel, considered one of Europe’s best-known funding bankers and now head of UniCredit, and Spanish lender Santander, his former shopper when he labored at UBS and Merrill Lynch.
Brought by Orcel, the case centred on Santander’s choice to withdraw a proposal it made to him in 2018 when he was operating UBS’s funding financial institution.
The unique judgment levied €10m “for moral and reputational damages” to Orcel, in addition to contractual gadgets together with €5.8m for 2 years of wage, a €17m sign-on bonus and €35m compensation for lack of long-term incentives at UBS.
But attorneys from either side identified that this didn’t take into consideration funds Orcel had already acquired from UBS and so the choose lowered the quantity awarded for lack of long-term incentives from €35m to €18.6m, according to court docket paperwork seen by the Financial Times. The choose’s revised ruling was first reported by Reuters.
Last May, Orcel halved his declare for compensation from Santander, having initially sought €112m.
Orcel alleged that the financial institution’s reversal of the choice it made in September 2018 constituted a breach of contract. In arguments finally rejected by the court docket, Santander claimed Orcel’s supply letter didn’t quantity to a contract below Spanish regulation.
“We welcome this clarification and will resume the appeal process in due course,” Santander mentioned however the financial institution continues to contest the choose’s findings.
Orcel was not instantly obtainable for remark.