Pressure on Telecom Italia to Let Shareholders Decide on New Chairman
Published on: 11th Mar 2014
Telecom Italia has confirmed that it has received a notice from a minority shareholder to review how it nominates its Chairman. The company is also understood to be prepared to let the shareholders vote on the appointment in future.
The board of directors, which is indirectly controlled by Telefonica currently selects the Chairman, but the other shareholders have been advocating changes to give them more say in the company.
At the moment, Telecom Italia's board is dominated by representatives appointed by a small holding company, Telco, which in turn is majority owned by Telefonica. That gives a small number of shareholders outsided influence over the board and its decisions, which has annoyed other shareholders for some years.
With Telefonica's increased influence in the company, and its mounting debt crisis, there is pressure on the company to normalise its shareholding structure.
Findim Group, which owns around 5 percent of Telecom Italia, has now submitted a request to have the Chairman nomination put to a full shareholder vote, as opposed to being decided at by the board of directors. A shareholder preferred Chairman would make it easier to push through reforms later on.
Telecom Italia's board recently named Aldo Minucci interim chairman, who has said he will only hold the post until a permanent replacement is named, probably at the annual meeting in April.