Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Generali shareholders urged to back CEO reappointment - documents

Published 04/09/2022, 04:53 AM
Updated 04/09/2022, 06:10 AM
© Reuters. FILE PHOTO: The logo of insurance company Generali is seen on the company headquarters in Budapest, Hungary, November 29, 2019. Picture taken November 29, 2019. REUTERS/Tamas Kaszas/File Photo
GASI
-

MILAN (Reuters) -Leading investor advisers have recommended shareholders at Generali (MI:GASI) back the proposal by the Italian insurer's outgoing board to hand CEO Philippe Donnet another term at the helm, documents showed on Saturday.

In reports issued by Institutional Shareholder Services (ISS) and Glass Lewis ahead of an April 29 general meeting to name a new board at Generali, the two proxy advisers urged shareholders to support the slate of board nominees put forward by the outgoing board.

The board's proposed reappointment of Donnet has been challenged by Italian tycoon Francesco Gaetano Caltagirone, who owns more than 9% of Generali and is its second biggest shareholder behind investment bank Mediobanca (OTC:MDIBY).

Mediobanca backs Donnet, while Generali's third-biggest investor, Italian eyewear billionaire Leonardo Del Vecchio, has sided with construction magnate Caltagirone.

The tussle for control of Europe's No.3 insurer threatens the stability of a group that is a cornerstone of Italy's financial system and a major holder of its public debt.

Glass Lewis said it did not believe Caltagirone's alternative plan for Generali made a compelling case to suggest the group had suffered from poor operational performance, missed targets or subpar investor returns.

"We believe the Dissident's central strategic thesis ultimately tilts from the attractively ambitious to the disconcertingly optimistic," it said in the report, of which Reuters saw a copy.

In pledging to grow Generali's earnings per share in coming years roughly twice as fast than envisaged by Donnet's plan, Caltagirone has put forward a veteran Generali executive, Luciano Cirina, as his own CEO candidate.

© Reuters. FILE PHOTO: The logo of insurance company Generali is seen on the company headquarters in Budapest, Hungary, November 29, 2019. Picture taken November 29, 2019. REUTERS/Tamas Kaszas/File Photo

"The dissident plan is indeed more ambitious than the company's, but it appears unclear if Caltagirone's offers a superior path after considering factors like execution skills, feasibility, and risk," ISS said.

"In terms of governance, Caltagirone has been 14 years on the board and his accusations appear strangely timed after such a long tenure," it added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.