Santander ordered to pay 68 million euros to banker for canceling job offer Business

Santander has lost his battle with leading banker Andrea Orcel after being ordered to pay him € 68million (£ 58million) for withdrawing a job offer.

The Spanish lender, which has an extensive branch network in the UK, offered the UBS banker his CEO role in late 2018 after spending more than two decades advising Santander.

During this time, he developed a close relationship with the wealthy Botín family, who founded and continues to run the bank.

However, Santander subsequently decided not to proceed with the appointment due to the “unacceptable” costs of his compensation for past UBS compensation after months of talks with the Swiss bank.

Mr Orcel, who is now the managing director of Italian bank UniCredit, has claimed tens of millions of lost wages and has now enriched himself by almost £ 60million after winning his battle.

According to a ruling seen by Bloomberg, Mr. Orcel’s contract was valid and the bank broke it by canceling the appointment.

Santander’s decision not to hire Mr Orcel in 2019 has raised eyebrows in the financial industry, as banks regularly buy new hires as part of their long-term compensation packages and should be adept at determining the cost.

However, the Spanish lender has always insisted that a “rigorous governance process was followed” and that a contract had never been signed, arguing previously that “a letter of offer is not a contract “in Spanish law.

Mr Orcel pocketed a £ 17million ‘golden hello’ when he joined UBS in 2013, a sum described as ‘scandalous’ by Swiss politicians at the time.

He was also accused of being a “deal junkie” and “the bank’s Ronaldo” when he appeared before the UK Banking Standards Committee that same year.

A Santander spokesperson said: “We strongly disagree with the decision. Santander’s board is confident that we will succeed on appeal, as we have been in the two criminal complaints already examined. by the courts regarding this matter. “