At Italian bank Unicredit, new salary guidelines have been a topic of heated debate for months. It should be clear how CEO Andera Orcel will fare. Meanwhile, a member of the board and remuneration committee surprisingly resigned.

The CEO of Unicredit Andrea Orcel can expect a salary increase between 20 to 40 percent, as reported by the Italian daily «Il Sole 24 Ore» (in Italian, behind paywall), citing people familiar with the matter.

With such an increase Orcel's salary package would rise from its current 7.5 million euros ($7.9 million) to between nine and 10.5 million euros. A final decision is still pending and is said to depend on feedback from investors currently being consulted by the bank.

Unicredit indicated it would re-evaluate Orcel's compensation before the 2023 annual general meeting. The review will consider whether the results achieved by the former UBS investment banking chief justify an increase, according to a document posted on the bank's website.

When Orcel took the CEO post in April 2021, he narrowly avoided a shareholder revolt. Criticism was leveled at the fact that his salary was double that of his predecessor, although that might now be tempered since Unicredit's share price has more than doubled since he took office.

Leak Investigation

The resignation of Jayne-Anne Gadhia as a member of the board of directors and chairwoman of the bank's remuneration committee is also a talking point. The departure was communicated by the bank as early as Feb. 10, citing a «new professional commitment» by the former Virgin Money chief as the reason.

However, according to the «Financial Times» (behind paywall), the move was related to unfounded allegations of leaks from the board, according to sources. An internal investigation was launched following a series of articles with information from the bank's environment, and reports involving the bank's new salary structures.

Gadhia reportedly tendered her resignation after being questioned as part of the investigation by Chairman Pier Carlo Padoan and the head of the legal department, Gianpaolo Alessandro. The allegations were eventually withdrawn, according to the report.