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Italian investment banking company UniCredit recently announced significant adjustments to its employee bonus structure following a period of exceptional financial performance.

The decision follows a record-breaking year for UniCredit, with soaring profits and enhanced shareholder returns. Specifically, the bank has opted to raise the average bonus allocated to its top-level managers by an impressive 12%, signaling a commitment to "rewarding key personnel" for their contributions to the institution's success, according to BNN Bloomberg.

One notable aspect of this bonus allocation is the establishment of a substantial bonus pool totaling approximately €128 million ($140 million USD), earmarked primarily for what the bank terms "risk takers."

However, despite the increase in bonus payouts, the total bonus pool for the current year is slightly below that of the previous year. This major difference is attributed to a strategic reduction in staff numbers, with the bank's workforce shrinking from 935 to 827 individuals over the period.

Besides increasing bonuses for its top-level executives, UniCredit has also decided to improve the rewards for its non-executive staff members up employee morale and top-notch performance for more record profits in the following years.

UniCredit's CEO, Andrea Orcel, played a major part in driving these initiatives, aiming to retain top talent and cultivate a culture of excellence within the institution. Since his leadership, he has overseen substantial transformations at UniCredit, including operational streamlining, divestment from underperforming sectors, and strategic reallocation of resources toward areas with promising growth prospects.