The proxies they stand united behind the current management of generals. In view of the very important shareholders' meeting scheduled for next 24 April, called to renew the board of directors of the Lion, Glass Lewis recommends voting for Mediobanca's list which confirms support for Philippe Donnet for the role of CEO and Andrea Sironi for the role of president. The same recommendation had arrived a few days ago from the other proxy advisor, Iss.
After Easter, in Trieste, it is expected a challenge to the last vote between the Mediobanca list (which aims to confirm the current leaders) and the minority list of Francesco Gaetano Caltagirone, with Assogestioni possible third wheel. It remains to be seen what he will do Unicredit, which holds 5,2% of the Trieste-based company and which, despite having repeatedly reiterated that its investment in Generali is only "a financial investment", could decide to set its sights on the insurance company. Especially if there is a possible step back on Bpm bank, an option on which the bank is making "all assessments".
In this context, the title at Piazza Affari Generali shares advanced by 2,89% at mid-morning, reconnecting to 30 euros Unicredit earn over 9% while those Mediobanca are up 6,73% on a day when all European stock markets are rebounding after the tariff truce established by US President Donald Trump.
Glass Lewis to members: “Vote for continuity”
“We believe that shareholders would be better served by using their vote to ensure the continuity of the council of administration,” Glass Lewis wrote in black and white in a report.
Overall, the proxy explains that Generali “has shown a positive performance in recent years, together with robust returns for shareholders”. Although “some shareholders may want to support the Assogestioni list”, the report continues “shareholders would be better off using their vote to ensure continuity of the current board“, led by Andrea Sironi and Philippe Donnet as president and CEO.
Glass Lewis also believes that “the current composition of the board of directors is adequatelyand independent and provide a balanced representation of the key skills for a company in this sector”.
“After reviewing all nominations submitted for election, the incumbent and proposed chairman and chief executive officer will likely be elected to the board, and the elected board will maintain or increase the current percentage of independence,” the proxy further notes.
Compact proxies alongside Donnet
A judgment that adds to that of Iss, who in recent days has in turn recommended vote for the Mediobanca list, preferring it to those presented by the Caltagirone group and Assogestioni. It should be noted that a few days ago the same proxies have instead lined up on opposite sides regarding the capital increase of the Monte dei Paschthe preparatory to the ops on Mediobanca. In view of the other important meeting, in this case scheduled for April 17, Iss advised the shareholders to vote against the increase, Glass Lewis in favor.
Donnet: “Changing governance would be a gamble”
“Thinking you can change the governance structurewithout a clear industrial direction and a cohesive board It would be, frankly, a gamble”. Generali CEO Philippe Donnet said this in an interview with Il Piccolo di Trieste and the newspapers of the Nem group.
The manager added that “the continuity of a governance with a board led by our president Andrea Sironi who has demonstrated great leadership, and by an expert management which has been able to face serious crises, is today more than ever in the interest of all shareholders, and also of the country. Generali is a systemic company for Italy, and its stability is a safety factor also in the broader economic context”.
When asked if Caltagirone and Dolphin can influence control without going through a takeover bid, Donnet replies that "whoever wants to control Generali must recognize a control bonus to all shareholders. This is the case in all listed, contestable companies, and it is also true for us."
Then he concludes. “This background noise is not good for Generali, and especially to its shareholders, even if the performance was not affected. When I took over nine years ago, the company was perceived as weaker. Today, this is no longer the case.
In recent years, thanks to the board list, these issues relating to the weight of individual shareholders had disappeared from investors' radar.
