Banco Santander SA has dropped a plan to appoint UBS Group AG investment banking chief Andrea Orcel as its new CEO after the Swiss lender reportedly demanded that he serve his entire six-month garden leave before joining the Spanish bank.
Santander said in a statement that the decision reflected "the change, after the discussions held, of the basis upon which the board initially decided to appoint Mr. Orcel and the fact that the costs of compensating him for past remuneration cannot exceed those corresponding to the original understanding."
José Antonio Álvarez Álvarez will continue to serve as Santander group CEO and vice chairman, and will not become chairman of Santander's Spanish business as planned. Rodrigo Echenique Gordillo will delay his retirement as chairman of Santander Spain, due to take effect in March, until a successor is named.
Gordillo will also continue to serve as a Santander group vice chairman alongside Álvarez and Bruce Carnegie Brown.