, Columnist
Santander’s CEO Debacle Is More Than an Embarrassment
The failed attempt to hire a star deal-maker raises a question of governance.
Ana Botin, chairman of Banco Santander SA.
Photographer: Luke MacGregor/BloombergThis article is for subscribers only.
Andrea Orcel was never an obvious choice for Banco Santander SA, and the 11th-hour reversal of its decision to name him CEO is more than just an embarrassing blunder for the Spanish lender.
On Tuesday, the bank said Jose Antonio Alvarez — who had been made a vice chairman to make room for the new leader — will continue as CEO. The lender blamed the U-turn on the greater-than-expected cost of compensating Orcel for the $50 million or so of deferred compensation he would forfeit by defecting from his previous employer, UBS Group AG. It’s clear Santander hoped both UBS and Orcel would agree to compromise.