Unicredit flies on the stock exchange earning over 4% a Business Square. But why does the Unicredit stock go up? In addition to the favorable expectations for the entire banking sector, the shares were driven by the favorable opinion of Jefferies, who recommended buying the shares, after meeting with the managing director, Andrea Orcel. But the tensions that emerged in the Board of Directors also attract attention, due to the resignation of the former chairman of the remuneration committee of Unicredit, Jayne-Anna Gadhia, who according to the Financial Times, would have left her post after being accused of having disclosed confidential information on the salary of the CEO of Unicredit Orcel which should rise to over 10 million from 7,5 million. Finally, the Milanese bank, starting today, Monday 27 February, enters theEuro Stoxx 50.
Unicredit soars on the stock market thanks to the "buy" of Jefferies
Unicredit is gaining ground after the analysts of the American business house confirmed the "buy" recommendation in the light of the roadshow conducted by the managing director Orcel in New York. In the report entitled "On the road with the CEO", Jefferies analysts believe that the bank's management continues to "deliver a convincing message", aiming for a generous distribution of value, in the form of dividends. The judgment is therefore "buy" with price target at 24,5 euros.
Meanwhile, management aims to liquidate the less profitable exposures remaining on the balance sheet, pursuing the philosophy of optimizing capital. In 2023, the objective of a distribution substantially in line with that of 2022 was reaffirmed. In 2024, the bank could be affected by any rate cuts by the ECB, which however will be counterbalanced by other levers, such as a rise in commissions.
As for extraordinary operations, the management was also clear that any mergers and acquisitions could be risky and will therefore be taken into consideration "only if they add value and allow us to support distribution capacity".
Unicredit replaces Linde in the Euro Stoxx 50
Unicredit will replace Linde, the world's largest industrial gases company, in the index Euro Stoxx 50 starting today. The reason is the delisted di lime from the Frankfurt Stock Exchange, decided in January by the shareholders of the company, which will remain listed only on the New York Stock Exchange.
Storm in the Unicredit board of directors over Orcel's maxi salary
Meanwhile, Unicredit remains under scrutiny also following the indiscretions that emerged on the maxi salary of CEO Andrea Orcel, with the resignation of the president of the Unicredit remuneration committee, Jayne-Anna Gadhia. The move, however, brings back the Financial Times, was officially motivated as a consequence of the appointment of president of Moneyfarm, which took place at the end of January. But the newspaper points out that the decision came a month after the appointment and in conjunction with the decision on the increase in the manager's salary.
In the wake of the excellent 2022 results the number one of the bank in Piazza Gae Aulenti, should receive an increase in remuneration between 20 and 40% compared to the current salary: Orcel's annual salary would therefore go from 7,5 million to a figure between 9 and 10,5 .XNUMX million.
These are salaries that are certainly not infrequent among the top management of big corporates, but not all shareholders always agree. For example, this is what happened last year at Stellantis, the CEO Carlo Tavares for 2022 there was a reduction of 2,1 million euros, from 17 million in 2021 to 14,9 million in 2022, without increases in the annual base and bonus. But this year it could reach 23,5 million euros, if financial, commercial or technological objectives are achieved by 2026, thus bringing the remuneration for 2022 to 23,5 million.
How much does Orcel make? The new salary of the CEO of Unicredit
In view of the upcoming season of shareholders' meetings, the focus of shareholders is on corporate financial statements and dividends, but also on the remuneration of top managers. According to the rumors circulated in the last few hours, the increase of Orcel's maxi-salary would be:
- a component fixed growing to between 3 and 3,5 million (2,5 million today);
- a component variable which would rise to a value between 6 and 7 million (5 million today).
The last word will still be the shareholders, in the meeting to be held at the end of March. The issue of Orcel's salary has been at the center of observers' attention for some time, with the Roman banker intending to assert the results obtained quarter after quarter at the meeting. The €5,2 billion net profit achieved in 2022 is the best figure in over a decade for the banking institution and expectations for 2023 are more than positive compared to the uncertain global scenario, with net profit and a distribution to shareholders” substantially in line” with the previous year.
