Telecom Italia (TI) shareholders have elected Giuseppe Recchi as chairman of its new, independent director-led board.
The new 13-member board, whose term runs for three years, includes 10 independent directors, up from five previously. Key shareholder…
Telecom Italia (TI) shareholders have elected Giuseppe Recchi as chairman of its new, independent director-led board.
The new 13-member board, whose term runs for three years, includes 10 independent directors, up from five previously. Key shareholder Telefonica does not have any executives on the new board, helping to allay concerns over a potential conflict of interest in Brazil, where the Italian and Spanish incumbents compete.
The move follows pressure from minority shareholders, including activist investor Marco Fossati’s Findim Group and small shareholders association Asati, for a more independent board. They argued that the previous board prioritised the interests of TI’s largest shareholder Telco, led by Telefonica. In the past, Telco representatives have had a majority of board seats.
In February, TI directors approved a plan led by CEO Marco Patuano to change the company’s corporate governance to give minority investors more influence. The plan included the appointment of a non-executive, independent chairman.
Telco proposed Recchi as chairman, however he has no ties to Telefonica.
Recchi chaired the board of Italian oil and gas multinational ENI from May 2011 until earlier this week. A member of the Italian Corporate Governance Committee, Recchi is also on the boards and committees of several other organisations. Previously, he held managerial positions in Europe and the US for General Electric, most recently as president and CEO of GE South Europe.
Recchi will lead the Italian incumbent, which is tackling a debt pile amounting to €27bn at the end of 2013, alongside Patuano, who has been re-elected to the board.
Recchi replaces Aldo Minucci, who stepped in after former chairman and CEO Franco Bernabe left last October.
TI is currently sounding out the market for its mobile towers in Italy and Brazil ahead of a potential sale.
