Business

Generali CEO Donnet survives but rebels take board seats

  • CEO Donnet elected for third time period
  • Insurgent investor Caltagirone’s camp wins three board seats
  • Firm had confronted criticism over development plans

MILAN, April 29 (Reuters) – Philippe Donnet saved his job as chief govt of Italian insurer Generali (GASI.MI) on Friday, surviving a problem from a gaggle of insurgent home buyers due to sturdy help from institutional shareholders.

The vote on the firm’s annual normal assembly (AGM) ends months of bitter infighting on the coronary heart of Europe’s third-largest insurer however leaves a query mark over whether or not the principle challengers will grasp on to their mixed 20% stake.

The corporate’s board nominees, backed by main shareholder Mediobanca, gained the help of 56% of shareholders who voted on the AGM, towards 42% for a rival slate nominated by investor Francesco Gaetano Caltagirone.

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Nevertheless, Caltagirone’s share of the vote was sufficient to make sure his checklist can be allotted three seats on the 13-strong Generali board, doubtlessly making life uncomfortable for Donnet, who has been in cost since 2016.

Caltagirone, a building and media entrepreneur, can be in line to take one of many locations as a result of his was the primary identify on the slate put ahead by his group.

He had stop the board in January and his camp has been pushing for Generali to set extra formidable development targets and to step up its deal-making exercise.

Talking after the vote, which was held remotely due to COVID-19 protocols, Donnet made a name for unity.

“The unambiguous alternative of a majority of shareholders is proof of the arrogance they’ve in our administration staff and strategic plan,” he stated.

“Now we’ll all work collectively in a single route with the board, administration and our community of brokers … to pursue the curiosity of all stakeholders and the success of our group.”

Caltagirone and fellow billionaire investor Leonardo Del Vecchio had opposed the checklist of executives proposed by the Generali board. learn extra

Caltagirone had nominated former Generali govt Luciano Cirina as a substitute for Donnet and former Goldman Sachs banker Claudio Costamagna as chairman alongside Cirina.

Cirina and Costamagna had dubbed their programme “Awakening the Lion”, a reference to Generali’s nickname “The Lion of Trieste”.

They wished to spend as a lot as 7 billion euros ($7.4 billion) on M&A, in contrast with the present board’s plan for 3 billion euros, and have additionally focused annual earnings development of greater than 14% with heavy price cuts and acquisitions.

Roberto Lottici, a fund supervisor at Banca Ifigest in Milan, stated it’s now crucial that the rival events set up a dialogue.

“The problem can be to mix Generali’s trademark ‘security and solidity’ with the bolder angle promoted by Caltagirone,” Lottici stated.

“Let’s not neglect the challengers have invested quite a bit in Generali and so they actually do not wish to hamper the corporate’s progress.”

($1 = 0.9462 euros)

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Reporting by Gianluca Semeraro and Valentina Za
Modifying by Keith Weir and David Goodman

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