Santander boss
The very public row, which has offered a rare glimpse into the inner workings of a top bank, ended up in a
Orcel and Botin, both wearing dark suits and masks, sat in the front row of the hearing, which was held in a conference hall instead of a traditional court room due to Covid-19 protocols and because of intense media interest in the case.
The case revolves around whether a four-page offer letter was a binding job contract or a non-binding initial offer.
Orcel was initially suing for as much as €112m after Santander backed out of hiring him for the top job.
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It had been expected to be concluded on Wednesday, but was suspended by the judge after a request by Orcel’s lawyers that top executives from
The Santander chairman, her mouth and nose covered by a blue mask during the proceedings, told the hearing that the letter offering Orcel the CEO role “was not a contract,” and that the bank’s board never approved his final compensation package.
“The buyout figure was not agreed. The maximum figure was set and the board decided to communicate the appointment on the basis that the overall package would be in line with the market. But the board did not approve the buyout figure,” Botin said.
She had earlier greeted Orcel, who has not been called to testify, with a “good morning” before taking her seat four spaces away from her former investment banking adviser.
Tracking the ‘Rainmaker’
Botin surprised the banking world when she offered Orcel the top job in
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These centered on covering up to €35m of his compensation package from
Botin said today that Orcel’s appointment as Santander CEO had never actually taken place and a contract was not fulfilled, although she had met him to discuss the Spanish bank’s strategy after offering him the top job.
She said the offer letter to Orcel had stated that any payments he was set to receive from his former employer
After the CEO role at Santander fell through, Orcel had initially sought as much as €112m for breach of contract and damage to his career.
But sources close to the matter and a court document seen by Reuters on Tuesday showed he had cut his initial claim by tens of millions of euros.
The 57-year-old banker also dropped the part of his legal claim that would require the Spanish bank to hire him, because he has since been appointed as CEO of Italy’s
Pay has also been an issue for Orcel at
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The post Santander boss
© City AM, source