(BFM Bourse) – After a fierce battle, the shareholders of the Italian insurer Generali voted on Friday for the renewal of CEO Philippe Donnet, thus inflicting a defeat on the rebellious billionaires who opposed it, Leonardo Del Vecchio (main shareholder of EssilorLuxottica) and cement magnate Francesco Caltagirone.
In total, 55.9% of the capital represented at the general meeting voted for the list of the outgoing board of directors, while 41.7% opted for that of the opposing camp, led by Francesco Gaetano Caltagirone. A third list, presented by Assogestioni, which brings together Italian institutional investors, won only 1.9% of the vote.
“The majority spoke clearly and unambiguously for the list presented by the outgoing board of directors”, commented Philippe Donnet, a 61-year-old French polytechnician, thus heading towards his third term at the head of the Italian giant. 70.73% of Generali’s capital was represented, a record participation rate.
Philippe Donnet was able to count on the votes of Mediobanca, the main shareholder with 12.8% of the capital and above all 17.2% of the voting rights of Generali, those of the De Agostini holding company (1.44%) and of a series of investment funds, mainly international, which have publicly lined up behind him.
The choice of institutional shareholders, ie 35% of the capital, proved to be decisive for this unprecedented battle. The two main shareholder advisory companies, ISS and Glass Lewis, very listened to by foreign investors, had indeed recommended to vote for the list of Philippe Donnet, more credible according to them. The polytechnician, who also holds an actuary degree, held various management positions at Axa, notably taking charge of the Italian subsidiary Axa Assicurasioni, then worked in private equity, before joining Generali in 2013, of which he became CEO. in 2016.
The sling against its renewal was led by two great figures of Italian capitalism, Francesco Caltagirone, 79, and Leonardo Del Vecchio, 86, the founder of the eyewear manufacturer Luxottica (merged with Essilor) and second fortune of Italy.
Call for unity
MM. Caltagirone (9.95%) and Del Vecchio (8%) had received the support of the CRT foundation (1.7%) and also of the Benetton family (4%), which rallied to them, preferring the candidates from “entrepreneurs” to the “self-proclaimed list” of outgoing directors.
Facing Philippe Donnet, it is Luciano Cirina, 56, former head of Austria and the Eastern Europe region of Generali, who had unsuccessfully sought the post of CEO. The group, which sees it as a “treason”, dismissed him shortly after the announcement of his candidacy.
“We will now work together with determination to preserve the interests of all shareholders,” promised Philippe Donnet, thus launching an appeal for unity.
The slingers had published in March a strategic plan presented as more ambitious than that of the CEO, called “Wake up the lion”, in allusion to the emblem of the insurer. This plan aims for an increase in earnings per share of more than 14% per year by 2024, against a target of 6 to 8% envisaged by the current management, and is more lavish with regard to the war chest. of 7 billion euros from the insurer, by considering major acquisitions.
The lion already on the prowl
The dissidents argue that Generali has lost ground to Allianz and Axa, the world’s two largest insurers, or even to Zurich Insurance, with a capitalization that has shrunk by 8.2 billion euros over the past 15 years. where its competitors have increased theirs.
Supporters of Philippe Donnet counter that since his appointment as CEO in November 2016, Generali’s share price has actually climbed 55%, well above the industry average, and shareholder returns have increased. by 106%. And in 2021, for the third year in a row, the insurer posted record results.
Does Generali need to get out of his nap? “The lion has already woken up in recent years, major transformations have been made,” commented Giuliano Noci, professor of strategy at the Polytechnic of Milan, to AFP, judging “positive” the balance sheet of the French boss. .
But Francesco Caltagirone and Leonardo Del Vecchio, who will still control three seats on the future board of directors, have probably not said their last word. They could also increase the pressure on Mediobanca, their main opponent in the fight for control of Generali, which they accuse of acting behind the scenes to impose the leaders of its choice. The charges against Mediobanca are all the more significant since Leonardo Del Vecchio is none other than… its main shareholder, with a 19.4% share, Francesco Caltagirone holding 3.1%.
(With AFP)
©2022 BFM Bourse