MILAN, March 31 (Reuters) – Shareholders in UniCredit CRDI.MI met on Friday to vote on a brand new pay scheme for Chief Govt Andrea Orcel designed to reward outperformance with a 30% pay elevate.
Buyers with 68.9% of the financial institution’s capital have been in attendance, the financial institution mentioned.
German insurer Allianz ALVG.DE, which holds a 5.16% stake behind BlackRock’s BLK.N 5.9%, has already thrown its weight behind the proposal.
Nevertheless, main governance advisers Institutional Shareholder Companies (ISS) and Glass Lewis have beneficial rejecting the brand new pay bundle.
In , UniCredit has instructed proxy advisers that their advice to reject the brand new remuneration coverage would end in increased mounted pay for Orcel and not using a tougher efficiency framework.
The proposed new remuneration construction boosts Orcel’s pay bundle by 30% if he beats a brand new set of targets for 2023, whereas penalising underperformance greater than up to now.
Hitting the targets would see Orcel’s pay unchanged at an general 7.5 million euros ($8.2 million), with a discount within the bonus element offsetting a 30% improve within the mounted half to three.25 million euros.
The mounted pay improve is a board choice upon which shareholders don’t have any say, so rejecting the modifications would outcome within the mounted wage rising with out this being a part of a brand new pay construction.
($1 = 0.9187 euros)
Reporting by Valentina Za,
Writing by Keith Weir, modifying by Gavin Jones
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