MILAN (Reuters) -UniCredit will ask shareholders to approve a board proposal to lift by 30% the compensation of Chief Government Andrea Orcel if the group beats a large set of targets this 12 months, individuals with information of the matter advised Reuters on Wednesday.

Orcel’s present pay package deal of as much as 7.5 million euros ($8 million) a 12 months already makes the previous head of funding banking at Swiss lender UBS one in all Europe’s greatest paid banking executives.

UniCredit’s board stated final 12 months it could overview the CEO’s pay on the idea of 2022 earnings, noting that European Union guidelines capping variable compensation at as much as twice the mounted wage made it unimaginable to reward outperformance.

Ranging from a better mounted wage, the brand new system ties the upper general pay of as much as 9.75 million euros to the financial institution’s skill to beat targets set for 2023, whereas reaching them would guarantee Orcel will get the identical compensation as in 2022, the individuals stated.

Orcel narrowly dodged a shareholder revolt over his pay, which was double that of his predecessor, when he first arrived at UniCredit in April 2021.

Since then, UniCredit’s share value has greater than doubled, including practically 20 billion euros to the financial institution’s market worth and making certain its return this week into the euro zone’s blue-chip index after seven years.

UniCredit has additionally elevated capital distribution to shareholders by 40% in 2022 and is paying out 5.25 billion euros to shareholders as dividends and, primarily, share buybacks out of final 12 months’s income. ($1 = 0.9369 euros)