The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Banking: What Santander’s failure to appoint Andrea Orcel as CEO means for the industry

Spanish-based group will struggle to overcome fall-out of recruitment U-turn, while Orcel’s situation raises broader questions for banks’ hiring and compensation strategies.

Andrea-Orcel-Ana-Botin-rip-780

Andrea Orcel and Ana Botín



Andrea Orcel’s eventual non-appointment as chief executive of Santander will, in time, rank high on the list of dysfunctional succession plans in an industry known for some spectacular failures.

Jaws hit the floor in September when Orcel, the epitome of the investment banker, was named as the putative CEO of commercial- and retail-banking focused Santander.

It seemed an unlikely fit, despite the close professional relationship Orcel had developed with executive chairman Ana Botín across decades of advising and doing deals together.

Jaws went through the floor nearly four months later when it was revealed that Orcel would not be joining after all.

At issue was the amount of deferred compensation Orcel had accrued during his seven years at UBS. Industry estimates put the figure as high as $50 million.

Botín’s explanation via a press release read thus: “Santander is a retail and commercial bank with significant responsibilities to the societies in which it operates. In making this decision we have had to balance the respect we have for all of our stakeholders – the millions of people, customers and shareholders we serve – with the very significant cost of hiring one Andrea, by compensating for the loss of a significant proportion of seven years of his past remuneration.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree