Philippe Donnet, who has been CEO at Europe’s third-largest insurer since 2016, is running for reappointment with the backing of Generali’s outgoing board and its leading shareholder Mediobanca.
Donnet’s candidacy is opposed by Italian tycoon Francesco Gaetano Caltagirone, Generali’s second-largest investor, who has proposed former Generali executive Luciano Cirina instead.
Following is a summary of the main stakeholders and their stances:
IN FAVOR OF DONNET
Mediobanca
Milanese bank holds 12.8% of Generali, which accounts for a third of its profit. To counter challenger investors at AGM it has secured a temporary 17.2% voting stake.
De Agostini
Italian publisher has praised Donnet and is expected to back his reappointment before completing planned disposal of its 1.44% Generali stake.
Norges Bank, CPP, Calpers, SBA Florida, Union Investment, Deka
Generali shareholders Union Investment and Deka Investment have both told Reuters they back Donnet. Read full storyRead full story Proxy voting records show that Norway’s sovereign wealth fund Norges Bank, U.S. investors CalPERS and SBA Florida, Canada’s CPP are also in favor. Swiss foundation Ethos, comprising more than 220 pension funds, has recommended a pro-Donnet vote.
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AGAINST DONNET
Francesco Gaetano Caltagirone
Seventy-nine-year-old construction and newspaper magnate has a 9.95% Generali stake, which he has gradually increased in recent years. Before stepping down in January, Caltagirone had been a Generali board director since 2007, also taking on the role of vice chair in 2010. He will likely have a seat on the board again even if his bid to oust Donnet fails.
Leonardo Del Vecchio
Billionaire founder of Italian eyewear giant Luxottica is third-largest shareholder in Generali with a stake of around 8%. Del Vecchio, who is also the biggest investor in Mediobanca with a near 20% stake, has sided with Caltagirone.
Fondazione CRT
Banking foundation with a 1.7% stake supports Caltagirone’s plan for Generali.
Benetton Family
With 4% Generali stake and close ties to both camps, Benettons are set to back rival slate and want to promote dialog and cooperation after AGM.
Cassa Forense
Italian lawyers’ pension institute is reported to back the rebel billionaires with its 1% stake.
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YET TO DECIDE
Institutional Investors
Hold in aggregate 35% of the insurer. Their AGM attendance in recent years has been at around 20% but this year overall attendance is set to be markedly higher. Their vote is usually oriented by the recommendations of leading governance advisers Institutional Shareholder Services (ISS) and Glass Lewis which have both backed Donnet. Fund shareholders include BlackRock, Fidelity Investments, Vanguard, Thornburg Investment Management.
A group of 11 institutional investors holding 0.64% of Generali has filed a separate slate, which does not include a CEO candidate.
Retail Shareholders
Small savers made up mostly of wealthy families in Italy’s northeast hold around 22% of Generali. For retail shareholders the focus is the dividend policy, which Donnet in December pledged to boost.
(Reporting by Gianluca Semeraro and Valentina Za; editing by Kirsten Donovan, Alexander Smith and Keith Weir)
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