Telecom Italia SpA investors rejected a proposed compensation package for the company’s chief executive officer, after the carrier’s largest investor criticized it for lack of transparency, people familiar with the matter said.
(Bloomberg) — Telecom Italia SpA investors rejected a proposed compensation package for the company’s chief executive officer, after the carrier’s largest investor criticized it for lack of transparency, people familiar with the matter said.
Shareholders at the company’s annual general meeting on Thursday didn’t authorize a three-year incentive plan for CEO Pietro Labriola worth as much as €25.8 million ($28.3 million).
Top investor Vivendi SE and the majority of the company’s capital abstained, the people said, asking not to be named discussing confidential deliberations.
Paris-based Vivendi is Telecom Italia’s largest shareholder with a 24% stake.
That plan required Telecom Italia’s share price to rise to at least €1.5, among other conditions.
They are currently trading below 30 cents. The investors also rejected the CEO’s 2022 pay package worth €3.6 million, the people added.
Representatives for Telecom Italia and Vivendi declined to comment.
Read more: Vivendi Pressuring Telecom Italia on Top Management Pay
The vote escalates a clash between management and Vivendi over how to solve Telecom Italia’s long-running crisis.
The former phone monopolist is in the midst of a turnaround effort, with Labriola committed to selling off its most valuable asset, the landline network, to slash debt and enable the carrier to continue as a viable business.
Earlier this week, the company received fresh offers for its network by Italy’s state lender Cassa Depositi e Prestiti SpA along with Australia’s Macquarie Asset Management, and by US private equity firm KKR & Co.
Both offers are in the €19.3 billion-€21 billion range, people familiar with the matter told Bloomberg, while Vivendi has repeatedly said it values the grid at around €30 billion.
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