UBS' former top investment banker was supposed to have started the year as CEO of rival Santander. But now Andrea will have to cool his heels for several more months.
«Gardening leave» is the strict six-or nine-month notice period before officially leaving one finance job for another – so-called because bankers spent it at home, generally booted from their current employer's offices and blocked from contacting potential clients or poachable staff.
Investment banker Andrea Orcel has to sit out his entire gardening leave before he starts as CEO of Spain's largest bank, Santander, according to news outlet «Bloomberg». Orcel had apparently initially been released from his UBS ties because his start date was previously disclosed as «the beginning 2019».
Regulatory Switch?
Why would UBS delay Orcel's move to Santander's Madrid headquarters? The Swiss wealth giant and Spanish predominantly retail and commercial lender do not typically compete, though they do face off in some areas such as asset management.
The delay may have regulatory reasons: while UBS in Europe is primarily overseen by the U.K.'s Financial Conduct Authority, when Orcel moves to Santander, his main overseer will be an arm of the European Central Bank.
Succession Efforts
UBS is in the crosshairs of the FCA over the alleged rape of a former graduate employee last year. She appealed personally to Orcel for help. Orcel isn't accused of any wrong-doing, but the investigation is an extremely delicate one for UBS.
Orcel's exit has also complicated UBS' succession planning efforts, as finews.asia reported in November. The bank is reportedly courting ex-Bank of American investment banker Christian Meissner as part of a CEO grooming plan.
