MILAN, March 31 Reuters Shareholders in UniCredit met on Friday to vote on a new pay scheme for Chief Executive Andrea Orcel designed to reward outperformance with a 30 pay raise.

Investors with 68.9 of the bank39;s capital were in attendance, the bank said.

German insurer Allianz, which holds a 5.16 stake behind BlackRock39;s 5.9, has already thrown its weight behind the proposal.

However, leading governance advisers Institutional Shareholder Services ISS and Glass Lewis have recommended rejecting the new pay package.

In a letter of reply, UniCredit has told proxy advisers that their recommendation to reject the new remuneration policy would result in higher fixed pay for Orcel without a more challenging performance framework.

The proposed new remuneration structure boosts Orcel39;s pay package by 30 if he beats a new set of targets for 2023, while penalising underperformance more than in the past.

Hitting the targets would see Orcel39;s pay unchanged at an overall 7.5 million euros 8.2 million, with a reduction in the bonus component offsetting a 30 increase in the fixed part to 3.25 million euros.

The fixed pay increase is a board decision upon which shareholders have no say, so rejecting the changes would result in the fixed salary rising without this being part of a new pay structure. 1 0.9187 euros

Reporting by Valentina Za, Writing by Keith Weir, editing by Gavin Jones

Source Reuters