ROME, April 21 (Reuters) - Terna's outgoing CEO, Giuseppina Di Foggia, would have to give up her new role as Eni chair if she insists on claiming a 7.3 million euro ($8.58 million) severance pay from
Terna CEO waives claim to severance pay after criticism from Italy PM
Background and Developments in Terna CEO Severance Pay Controversy
Di Foggia's Decision to Waive Severance Pay
ROME, April 21 (Reuters) - Italian grid operator Terna said on Tuesday its outgoing CEO, Giuseppina Di Foggia, will waive her claim to 7.3 million euros ($8.56 million) of severance pay in order to take up a new post as chair of energy group Eni.
Political Pressure and Public Reaction
Di Foggia had come under pressure from Prime Minister Giorgia Meloni to renounce the payout at a time when the government is struggling to find ways to help families and firms cope with higher energy prices.
Terna's Official Statement
A statement from Terna said Di Foggia had "expressed her willingness to sign an agreement to give up her severance pay," adding that it would provide further details in due course "in full respect of the principles of corporate governance."
Next Steps and Board Meeting
Terna will hold an extraordinary board meeting in the next few days to discuss the issue, Reuters reported on Monday.
Prime Minister's Comments
Meloni told reporters earlier on Tuesday that Di Foggia had "to choose between the presidency of Eni and the severance package from Terna."
"It seems to me that the matter is quite straightforward," she added.
Government and Shareholder Perspectives
On Sunday, Italy's economy ministry said it was against state-backed groups paying severance cash to executives whose terms expire or who resign voluntarily.
The issue must be resolved before May 6, when Eni holds its shareholders' meeting.
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.
Additional Information
($1 = 0.8525 euros)
(Reporting by Giuseppe Fonte, editing by Gavin Jones)
