Telecom Italia (TIM) has announced that its board and remuneration committee is set to meet on 24 July to discuss a “mutual termination” agreement for its current chief executive Flavio Cattaneo. The statement follows a previous Reuters report in which six unnamed sources said Cattaneo was stepping down after clashing with Vivendi, the French company that controls TIM’s board via a 23.9 percent stake. The sources added that Vivendi’s chief convergence officer Amos Genish is set to be appointed as the Italian operator’s managing director, confirming earlier rumours.
A former CEO of state-controlled energy group Terna and public broadcaster Rai, Cattaneo was appointed TIM CEO in March 2016, replacing Marco Patuano who left following clashes with Vivendi. The French media giant has yet to make any statements but recent reports indicated that the company’s executives were angered by Cattaneo’s public spat with the Italian government after he confirmed plans to build fibre-optic networks in rural areas in competition with the state's own programme.
However, under the terms of the contract he eventually secured in spite of concerns from shareholders and auditors, Cattaneo is due a special bonus of up to EUR 40 million in addition to severance pay of around EUR 10 million. Following the meeting of its board and compensation committee, Telecom Italia is still set to report its first-half results on 27 July.
