By Valentina Za

MILAN (Reuters). Leading investor advisory firms raised new concerns about Andrea Orcel’s salary as UniCredit CEO. One recommendation was for shareholders to vote against Orcel’s pay in the second year.

Orcel, a former head for investment banking at Swiss bank UBS was able to avoid an investor revolt in 2011 over his remuneration packages that saw him as one of Europe’s most highly paid bank CEOs.

Glass Lewis, a leading proxy advisor Institutional Shareholder Services and Glass Lewis took aim again at Lewis’s compensation before an annual general assembly on April 8th. However, ISS didn’t call for investors not to discredit the bank’s current pay policy.

UniCredit awarded Orcel 6.7 Million Euros ($7.4 Miillion) in 2021. It also gave Orcel 4.8 M Euros in shares in a bonus sign-on, which was unrelated to the performance.

One of Europe’s most well-known and highly paid bankers, the banker had lost millions in UBS deferred payments when he joined.

His variable salary, which is equal to more than twice his 2.5 million euros fixed annual income, will start in 2022 and be tied to goals set by the Orcel-unveiled ‘UniCredit Unlocked’plan Orcel.

Although Orcel has acknowledged the improvement in Orcel’s remuneration framework, ISS stated that the package was still “concerning” and highlighted the concern over the cap on severance payments (at 15 million euros per month or six times fixed pay).

Glass Lewis said that the current company’s remuneration strategies was not in accord with shareholder’s best interests.

According to Reuters, “As such we don’t believe that the proposal merits shareholder support”.

UniCredit responded to Glass Lewis’ criticisms in a letter addressed to shareholders. UniCredit stated it was shocked and disappointed at the firm’s position.

BlackRock (NYSE) rejected Orcel’s salary package last year with only 54% votes. BlackRock is UniCredit’s most prominent investor and largest asset manager.

Orcel has a salary that is twice the amount of Jean Pierre Mustier before he became CEO. Mustier waived his severance pay upon arriving and took a voluntary 40% cut to his income as he planned to lay off thousands.

UniCredit informed shareholders that the CEO’s remuneration was in general in line with Intesa Sanpaolo’s (OTC:), while Mustier’s own pay cuts were irrelevant, as a result of his “personal considerations” at the time.

Glass Lewis stated that UniCredit was not paying enough attention to the concerns of shareholders last year.

It stated that while the company had indicated it was engaged with shareholders, it did not address specifically the results of its 2021 annual general meetings.

UniCredit claimed in its letter that 55% of its investors had been reached by UniCredit.

It stated that it had completely restructured its remuneration strategy over the past year to incorporate all of the input from the large engagement round.

UniCredit stated that it was linking Orcel’s variable pay and performance, as well as fully disclosing all relevant mechanisms.

Orcel’s compensation is also at center of the court case against Santander, a Spanish banker (MC:). Santander was sentenced by a Madrid court in December to 51.4 million euro for refusing to accept a job as CEO. This ruling has been appealed by the bank. ($1 = 0.9114 euros)