Andrea Orcel, this is the man at the helm of Unicredit
Unicredit makes history with a record profit 2023 (net 8.6 billion) which dwarfs any other company in the sector. A 50% jump compared to the previous year which sent the banking group's shares skyrocketing, recording an increase of almost 9%. But, one must ask, what are the secrets behind this triumph? First, the group adopted a shared strategy among its 13 banks, developing more efficient operations and cutting costs where possible. But that's not all: the company also gave a nice one cleaned up the accounts, chasing away waste and reinvesting savings strategically, strengthening the branch network and churning out new financial products. But the employees were the real driving force behind this success, spurred by a more streamlined corporate hierarchy and targeted cost optimization, which made it possible to reinvest in infrastructure and grow the business even further.
“We have restored trust and a desire for revenge to the employees after difficult years: upon my arrival we handed the levers back to the staff, we explained that making mistakes in good faith was not evil”, says the CEO of Unicredit, Andrea Orcel, recalling his entry into the banking giant. The CEO of Unicredit made headlines right from the start with an appointment supported by important shareholders of the bank, including the Crt and Verona foundations, as well as by international funds and Leonardo Del Vecchio, the owner of EssilorLuxottica. Defined as “the Cristiano Ronaldo of finance” but also “the steel banker” for his management style and his hyper-competitiveness, when Orcel becomes CEO of Unicredit on 21 January 2021faces a significant challenge in changing the course of the bank, and asks his colleagues and shareholders for time and patience, aware of the complex scenario facing him.
This is because Orcel had to deal with the legacy left by his predecessor, Jean Pierre Mustier, who had had to deal with the painful sales of Pioneer and Fineco and had also reduced his weight in the Italian retail market to the advantage of competitors such as Intesa Sanpaolo and others local players. Orcel, aware that catching up in this sector would be a demanding challenge, rolled up its sleeves by focusing on the potential of the country's digitalisation and banking services. Before fully assuming the role of CEO, Orcel carefully analyzes the strengths and weaknesses of UniCredit, but one of the first challenges that the banker will have to face is that relating to a potential merger with Monte dei Paschi di Siena, a move already implemented by his predecessor. A marriage with MPS that never reached the altar, where the CEO of Piazza Gae Aulenti made it clear from the beginning that an agreement would have been possible, but only if it had not been harmful to the bank's capital base and if it had led to an increase in profits.
But Andrea Orcel is a child prodigy of finance. Born on May 14, 1963 in Rome, Orcel demonstrated uncommon determination and discipline from a young age. Son of a Sicilian working in the leasing sector and a Tuscan-French mother employed at the United Nations, he spent part of his youth in Rome, attending the French high school Chateaubriand. Subsequently, he graduated with honors in economics and commerce at Sapienza University, with a thesis on hostile takeovers, already demonstrating an early interest in corporate and financial dynamics. His education continued at the Insead business school in Fontainebleau, France, before moving to London, where he currently resides. It is here that Orcel lays the foundations of a career full of successes. In fact, the head of Unicredit has traced a compelling career path abroad since his entry into the financial world in 1988 at Goldman Sachs from London. From there, he continued to Paris as a senior consultant at Boston Consulting Group from 1989 to 1992, before returning to the British capital as part of the team of Merril Lynchthe American institution acquired in 2009 by Bank of America, thus saving it from the fate that befell its competitor Lehman Brothers a year earlier.
In the twenty years spent in the London financial scene with BofA Merril Lynch, Orcel shined as an investment banker (hence the nickname steel banker), leading operations that guaranteed him million-dollar bonuses. In particular, in 1998 he orchestrated the 25 billion euro merger of Credito Italiano and Unicredito Italiano into Unicredit which then, again with his advice, purchased Capitalia. From here was also born the strong friendship with Alessandro Profumo who, having moved to MPS, called him back in 2013 to manage a massive capital increase of 13 billion euros. However during his time in London, Orcel also worked closely with Emilio Botín's Santander, contributing to the acquisition of Abbey Nationalto the operation Abn Amro and the purchase of Alliance & Leicester and Sovereign Bank.
The CR7 of finance then embarked on a new chapter in his career in 2011, joining UBS at the invitation of CEO Sergio Ermotti, also a former Merrill Lynch and Unicredit. However, his path was interrupted in September 2018 when he entered negotiations to become CEO of Santander. After an initial agreement on his compensation, the Spanish giant backtracked, accusing Orcel of having asked for too much. He, in turn, sues the bank for not respecting the agreements. On the one hand, the former UBS banker complained of not receiving the agreed salary, on the other hand the bank's top management accused Orcel of having secretly recorded the conversations regarding the issue. Between postponements of hearings and monstrous amounts of compensation, 2021 sees Orcel as the winner, a dispute resolved by the Madrid justice system with compensation in favor of Orcel from 68 million euros. With the 25-page sentence, the judge complied with the request of the Unicredit CEO, who shortly before the trial had lowered his compensation claims from the initial 112 million, as well as giving up his candidacy to become the bank's number two.
Despite the bad blow with Santander, like a Cristiano Ronaldo, it is difficult for Orcel to lose a match. Of course, he can stumble and lose the ball, or score a goal into an empty net, but Unicredit's recent moves speak clearly: the number one Italian banker has started an era that could surprise even the most sceptical.
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