25 July 2017
| Alan Burkitt-Gray
Flavio Cattaneo has agreed compensation of €25 million in return for his resignation as CEO of TIM, despite the fact that many elements in the company did not want him to go.
Cattaneo is leaving because, it is
understood, he did not want to work alongside Amos Genish, whom major shareholder
Vivendi wants to put in as managing director.
Of the €25 million, €2.1 million will be held back
for a year, to be paid if he does not work for
TIM’s competitors in Italy or Brazil.
Cattaneo will serve his last day as CEO on Friday 28 July, and
will cease to be a general manager of the company, which is
still officially Telecom Italia, the following Monday.
TIM has started to seek a new CEO, and has a board meeting on
Thursday when this will be considered.
It’s clear that Cattaneo’s departure
has been uneasy, with opposition from some elements of the
board, which is dominated by representatives of Vivendi, the
French media company that owns 24% of Telecom Italia.
"The board of statutory auditors has expressed non-favourable,
non-binding opinion [about Cattaneo’s removal],"
said a TIM statement – clearly implying that the
auditors were unhappy with the Vivendi coup
This impression was reinforced by a separate statement from
TIM, which paid tribute to Cattaneo’s contribution
to the company while he was CEO.
He delivered a "major and extraordinary turnaround of the
business", said TIM, adding that there were "all the positive
quarterly reports, positive on every line, which demonstrate a
major reorganisation of internal processes, efficiency plans on
non-core costs, and revenue plans, which saw company increase
its customers and revenues to levels not reached in the last 10
The company increased its core investments, and Cattaneo
brought it "back to leadership of the mobile segment" and under
his direction TIM covered "around 70% of the country with
TIM added: "It is universally recognised that such a recovery
has never before been seen, making it the first among the major
telecommunications companies that were formerly incumbent in
Europe and the US, in terms of speed of growth of all main top
line drivers, and of profitability, as well achieving the
greatest coverage in fibre." TIM thanked him "for the major
task he undertook".