Generali ‘categorically rejects’ mounting criticism as another key investor takes aim

Europe’s third-largest and Italy’s biggest insurer  Generali has addressed the claims made by one of its largest investors who stepped down from the board on Thursday (January 13) in a “surprise” move. The company has been  embroiled in a boardroom battle with major shareholders for quite some time regarding the reappointment of its CEO Philippe Donnet.

Board director Francesco Caltagirone, who holds just over 8% of the group's shares - the second largest in the company, has resigned saying that he was prevented from contributing to the strategy.

Caltagirone claimed of being “clearly opposed, prevented from making his own critical contribution and from ensuring adequate control”.

The company’s chairman Gabriele Galateri di Genola has expressed “deep regret and surprise” by the decision taken by Caltagirone but “categorically rejected” the reasons given by him.

Gabriele di Genola insisted that the company has always conducted its business with “absolute transparency and rigorous fairness”, particularly in relation to the renewal of the board.

Caltagirone is said to have voiced his criticism of the board's working methods in the past as well.

Earlier last year, the insurer had issued a statement following reports that two of its biggest investors are keen on seeing a leadership overhaul at Generali towards making its management more effective and profitable.

At that time, the company said that the majority of its non-executive board members are in favour of reappointing Donnet as group CEO for another mandate, expressing “appreciation of the work undertaken and the results achieved” by him during his tenure.

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