Santander to challenge Orcel in €100m legal battle over botched CEO plan
Santander has vowed today to fight a high-stakes legal battle with Andrea Orcel after withdrawing its offer to appoint the banker as its new chief executive.
The Spanish bank has said it will challenge a €100m (£90m) lawsuit from Orcel, the investment banker who was denied the role of chief executive just four months after being offered the post.
Read more: Orcel ‘offered £52m’ as part of Santander plan
Orcel has filed a lawsuit claiming the multinational bank violated a contract between the two sides.
The former head of investment banking at UBS has reportedly demanded he is given back his role of chief executive or paid damages adding up to roughly €100m.
“The bank has acted with total transparency and will present and defend its position before the courts,” secretary of the board Jaime Perez Renovales said today.
He added: “We are going to prove that the reasons given on the day to annul the appointment respond to reality and that the necessary conditions were not met for his appointment and hiring to be effective.”
Read more: Santander cancels appointment of Orcel over compensation
The remarks are the latest twist in a high-profile battle between the two sides, which was first sparked when Santander announced in January that it was ditching plans to hire Orcel.
Orcel was named to the post in September, leaving UBS to take a required six-month leave before starting his next chapter.
However, a disagreement over pay led to Santander withdrawing its offer several months later, raising questions about the Spanish bank’s hiring process.