On Friday, UniCredit‘s shareholders approved a new three-year term for CEO Andrea Orcel, making him one of the highest-paid bankers in Europe.
The meeting saw a significant turnout, with 68.8% of the bank’s capital represented, and major stakeholders like U.S. asset manager BlackRock and German insurer Allianz in attendance.
Andrea Orcel expressed humility and dedication in his written remarks to the shareholders, stating, “I don’t take my position for granted.
“I see it as something that you have to continually earn.” He emphasized the progress made during his tenure and his ongoing commitment to the bank’s transformation.
“We have made excellent progress in the last three years, but our transformation journey is not over… We will be relentless in our determination to improve.
“This is the culture I want to spread across all levels of our group during my second term as CEO,” Orcel added.
The election saw Orcel and the board candidates recommended by the outgoing directors receive strong support, securing 91.5% of the votes.
In a subsequent board meeting, UniCredit appointed Italy’s former Economy Minister Pier Carlo Padoan as chair and academic Elena Carletti as deputy vice chair.
Despite some criticism from leading proxy adviser Glass Lewis, 88% of the capital eligible to vote supported UniCredit’s 2024 remuneration policy.
This policy recently saw adjustments after queries to the European Banking Authority regarding the valuation of shares given as part of compensation packages for the bank’s 800 key risk takers.
These adjustments include a 10.8% increase in Orcel’s fixed salary, now totaling 3.6 million euros.
His target and maximum potential earnings have also increased to 8.6 million and 10.8 million euros, respectively.
Orcel, a seasoned investment banker, has strategically focused on substantial cash returns to shareholders as a method to enhance UniCredit’s share value, which has nearly closed a 70% discount to book value since his leadership began in 2021.
Known as one of Europe’s most adept banking dealmakers, Orcel has cautiously avoided significant mergers or acquisitions, prioritizing the preservation of shareholder returns and a minimum 10% increase in profitability.