Terna Board to Meet Over CEO Severance Pay Dispute
Terna will hold an extraordinary meeting to discuss a 7.3 million euro severance package for its outgoing CEO. The government opposes such executive payments.
The board of TERNA-RETE ELETTRICA NAZIONA is expected to hold an extraordinary meeting in the coming days to discuss the severance pay of its outgoing CEO, Giuseppina Di Foggia. Di Foggia has been nominated by the government of Italy to take over as the chair of ENI SPA, but a dispute has arisen regarding a 7.3 million euro ($8.6 million) severance package. While the board of Terna met on Monday, the source indicated that her specific case was not part of the discussion. The Italian economy ministry has recently voiced its opposition to state-backed companies providing severance packages to executives who resign or whose terms have concluded. > The ministry said it was against state-backed groups paying severance packages to executives whose terms expire or who resign voluntarily. The matter must be settled before May 6, the date of the Eni shareholders meeting, by which time Di Foggia must resign from Terna to assume her new role. A source familiar with the situation noted that Di Foggia's contract does not contain a clause that would prevent her from receiving the payout. This disagreement is politically sensitive for Prime Minister Giorgia Meloni's administration, particularly as rising energy costs continue to affect households and businesses. The Italian Treasury holds a 29.85% stake in Terna through the state lender CDP, and together they also control a 33.1% stake in Eni.
