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Orcel’s current pay package of up to 7.5 million euros ($8 million) a year already makes the former head of investment banking at Swiss lender UBS one of Europe’s best paid banking executives.
UniCredit’s board said last year it would review the CEO’s pay on the basis of 2022 earnings, noting that European Union rules capping variable compensation at up to twice the fixed salary made it impossible to reward outperformance.
Starting from a higher fixed salary, the new system ties the higher overall pay of up to 9.75 million euros to the bank’s ability to beat targets set for 2023, while reaching them would ensure Orcel gets the same compensation as in 2022, the people said.
Orcel narrowly dodged a shareholder revolt over his pay, which was double that of his predecessor, when he first arrived at UniCredit in April 2021.
Since then, UniCredit’s share price has more than doubled, adding nearly 20 billion euros to the bank’s market value and ensuring its return this week into the euro zone’s blue-chip index Euro Stoxx 50 after seven years.
UniCredit has also increased capital distribution to shareholders by 40% in 2022 and is paying out 5.25 billion euros to shareholders as dividends and, mainly, share buybacks out of last year’s profits. ($1 = 0.9369 euros)
