April 16 (Reuters) - Influential proxy adviser ISS has urged shareholders to vote against Italian energy company Eni's proposal to sharply increase its chief executive's pay for 2026, calling the move
ISS Recommends Eni Shareholders Reject CEO Descalzi's Pay Increase Proposal
ISS Opposition to Eni CEO Pay Hike and Shareholder Implications
Background on Eni's CEO Pay Proposal
April 16 (Reuters) - Influential proxy adviser ISS has urged shareholders to vote against Italian energy company Eni's proposal to sharply increase its chief executive's pay for 2026, calling the move "excessive".
After nine years of no pay raise, Eni planned to lift CEO Claudio Descalzi's remuneration by about 23% to 8.9 million euros ($10.49 million), with pay rising up to 38% to 15.4 million euros under an additional overperformance tier in its long-term incentive plan, the proxy advisory firm said.
Leadership Tenure and Reappointment
Earlier this month, Rome proposed reappointing Descalzi, 71, for a fresh three-year term starting in May, which would extend his reign as the company's longest-serving head.
ISS's Rationale for Rejection
"While some increase may have been understandable, the resulting level appears excessive," said ISS, calling current pay levels "already substantial".
ISS recommendations guide large numbers of shareholder votes at annual general meetings.
Transparency and Reporting Concerns
"In the remuneration report, the absence of reported performance outcomes for 2023-2025, together with the ongoing lack of timely information on accrued annual bonuses for senior managers, resulting in a one‑year reporting lag, raises transparency concerns and falls short of acceptable market standards," ISS added.
Eni's Response and Industry Context
Eni did not immediately respond to Reuters' request for comment outside regular business hours.
It said in March that it had assessed the remuneration of its CEO by benchmarking it against European peers such as Shell, TotalEnergies, and BP.
Challenges Ahead for Eni and Its Management
Analysts have previously cautioned that one of the challenges for the energy group and its top management in the next three years will be to support growth at its new units and make sure that returns promised to investment partners are delivered.
Shareholder Meeting and Additional Information
Eni plans to hold its shareholder meeting on May 6, according to its website.
($1 = 0.8487 euros)
(Reporting by Anusha Shah in Bengaluru and Mrinmay Dey in Mexico City; Editing by Sonali Paul)
