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Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £51.96bn
Enterprise Value £55.01bn
Revenue £12.40bn
Position in Universe 18th / 850

Mediobanca's board proposes new rules for future CEO selection

Wed 16th September, 2020 7:00pm
MILAN, Sept 16 (Reuters) - The board of Mediobanca  MDBI.MI 
proposed on Wednesday changing governance rules which at present
bar outsiders from holding the top job at Italy's leading
investment bank, as it prepares for a vote to keep the current
CEO in place. 
    An annual general meeting on Oct. 28 will be asked to
approve changes to allow external candidates to be considered
for the role of chief executive to align the bank's governance
with current market standards, Mediobanca said in a statement.
    The rule had been introduced in 2007 to preserve
Mediobanca's independence when its two founders, rival banks
UniCredit  CRDI.MI  and Capitalia, merged.
    In submitting its nominees for a vote on the renewal of the
board at the AGM on Oct. 28, Mediobanca's board proposed
confirming as directors for another three years the current CEO
Alberto Nagel and Chairman Renato Pagliaro.  urn:newsml:reuters.com:*:nL8N27T75B
    At the helm since 2008, CEO Nagel is credited with having
successfully steered Mediobanca away from a traditional role of
a powerhouse with stakes in all key Italian companies. 
    But he came under attack last year from eyewear billionaire
Leonardo Del Vecchio who has become Mediobanca's top investor
with a stake of just under 10% in Mediobanca.
    The Luxottica founder, 84, criticised Nagel's strategy
saying it relied too heavily on consumer finance and income from
the bank's 13% stake in Italian insurer Generali  GASI.MI .
    However, he later backed Nagel's business plan. Sources have
said Del Vecchio has committed to supporting Mediobanca's
current management after winning regulatory approval in August
to increase its stake to nearly 20%.
    Del Vecchio is not expected to submit his own list of board
nominees, which must be filed by Oct. 3.
            

 (Reporting by Gianluca Semeraro; Editing by Elaine Hardcastle)
 ((gianluca.semeraro@tr.com; +39 02 66 129 503;))
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