The Swiss bank isn't going to give on Andrea Orcel's $50 million in back pay after he takes the top Unicredit job.
UBS won't yield on roughly $50 million in awards Andrea Orcel still has stowed with the Zurich-based bank after he left 28 months ago in favor of Santander, Axel Weber signaled in an interview with broadcaster «Bloomberg».
«We have a very clear policy and it can be summarized in two words: it's leave, lose,» Weber said while adding he could not discuss individuals or employment contracts including that of Orcel, UBS' former top investment banker who is now headed for Unicredit.
«Made Him Whole»
The Swiss bank, which in 2013 «made him whole» with 25 million Swiss francs ($28 million) when Orcel (pictured below) defected from Merrill Lynch to join UBS, is less accommodating now. «If executives take another turn in their career and move to another organization that is their decision, and it has no implication for us,» Weber told the broadcaster.
This contrasts with a fevered hail-Mary attempt to keep Orcel onside late in 2018 after ex-CEO Sergio Ermotti blindsided the board with his departure. Weber said UBS is «not in any part of the discussions» on the Unicredit move.
Dramatic Pay Cut
Orcel is expected to earn far less in Italy than in Switzerland: Unicredit's outgoing boss Jean-Pierre Mustier's pay hovers just north of 1 million euros ($1.2 million). Unicredit will not make up for the lost UBS pay, «Bloomberg» reported on Friday.
«As far as Andrea is concerned, I wish him luck he's a great executive,» said Weber, who has presided UBS since 2012. Orcel is reportedly in the process of settling a 112 million euro lawsuit against Santander for dropping him as CEO, in order to take the Unicredit job.
