UniCredit chairman follows CEO's lead with 40 percent pay cut

Unicredit bank logo is seen on a banner downtown Milan, Italy, May 23, 2016. REUTERS/Stefano Rellandini

MILAN (Reuters) - Italy's biggest bank UniCredit CRDI.MI said on Tuesday its chairman would take a 40 percent cut to his annual salary, following in the tracks of CEO Jean Pierre Mustier.

Mustier announced he would drastically reduce his pay last month when he unveiled a business plan that envisaged 14,000 job cuts and 944 branch closures by 2019 as the bank prepared to raise 13 billion euros in a share sale early this year.

UniCredit said Chairman Giuseppe Vita would take the pay cut from Jan. 1, 2017. Starting from the same date Deputy Chairmen Luca Cordero di Montezemolo, Vincenzo Calandra Bonaura and Fabrizio Palenzona are cutting their special remuneration package by 40 percent, the bank said.

(This story corrects Jan 10. report to make clear deputy chairmen cutting special remuneration packages, paragraphs 1 and 3)

Reporting by Valentina Za