Telecom Italia Names New Chairman and Board of Directors
Published on: 17th Apr 2014
Telecom Italia has shaken up its board of directors appointing a new Chairman and reduced the dominance of Telefonica's control over the company.
Giuseppe Recchi, the former chairman of the Italian energy company, ENI is taking on the role of Chairman. Recchi was nominated by Telco, the holding company though which Telefonica has effective control of the company.
Recchi stood against Vito Gamberale, who is the CEO of investment fund F2i, and had been put forward by activist investor Marco Fossati, who has been pushing for more effort to reduce Telco's grip over the company.
Although Telco owns just 22.4% of the shares in the company, it nominates the majority of the directors to the board.
In total, 10 of the nominee directors were put forward by Telco to the 13-member board of directors.
However, three directors nominated by minority shareholders were also appointed to the board, slightly weakening Telco's control over the company.
The company is still under pressure to reform its shareholder structure and normalise the power of large shareholders over the company.