MILAN, April 20 - Italy's state-controlled power grid operator Terna will hold an extraordinary board meeting in the next few days to discuss the severance pay of its outgoing CEO, a source close to
Terna Board to Meet on CEO Giuseppina Di Foggia's Severance Pay Amid Eni Role
Overview of Terna CEO Severance Pay Dispute
Extraordinary Board Meeting Scheduled
MILAN, April 20 - Italy's state-controlled power grid operator Terna will hold an extraordinary board meeting in the next few days to discuss the severance pay of its outgoing CEO, a source close to the company told Reuters on Monday.
Giuseppina Di Foggia's Nomination and Severance Package
Giuseppina Di Foggia has been nominated as chair of Eni by the Italian government, but is unwilling to give up a 7.3 million euro ($8.6 million) severance package from Terna.
Board's Previous Actions
Terna's board met on Monday, but did not discuss her case, the source said. On Sunday, Italy's economy ministry said it was against state-backed groups paying severance packages to executives whose terms expire or who resign voluntarily.
Upcoming Deadlines and Contractual Details
The issue must be resolved before May 6, when Eni holds its shareholders' meeting. By then, Di Foggia must step down as Terna's chief executive to take up the new role.
The source, who spoke on condition of anonymity because the issue is private, said Di Foggia's contract did not include a clause preventing her from receiving severance pay at the end of the mandate or in case of an early resignation.
Political and Economic Implications
Government's Position and Broader Context
The dispute is politically awkward for Prime Minister Giorgia Meloni's government, at a time when rising energy costs due to the Iran war weigh on households and firms.
State Ownership in Terna and Eni
Italy's Treasury owns a 29.85% stake in Terna through state lender CDP. The ministry and CDP also control Eni with a combined 33.1% shareholding.
($1 = 0.8500 euros)
(Reporting by Giancarlo Navach, editing by Alvise Armellini and Alexander Smith)
