Severance Pay Standoff: Terna CEO's Departure Dilemma

Italy's power grid operator Terna is facing an internal conflict over a €7.3 million severance package for outgoing CEO Giuseppina Di Foggia. With political implications, the Italian government is opposing state-backed severance for departing executives, as Di Foggia transitions to chair Eni amidst rising energy costs.

In Milan, Italy's state-controlled power grid operator Terna is confronting an internal conflict over the severance pay of its outgoing CEO, Giuseppina Di Foggia. A source close to the company disclosed on Monday that Terna's board is expected to hold a special meeting soon to address the €7.3 million package.

Di Foggia, who has been nominated as chair of energy giant Eni by the Italian government, is unwilling to forgo the severance payout. The Italian economy ministry has expressed resistance to state-backed firms granting severance to executives whose terms have expired or who resign willingly, emphasizing that the matter must be resolved by May 6.

This dispute poses a political challenge for Prime Minister Giorgia Meloni's administration amid rising energy costs due to the Iran war, affecting households and businesses nationwide. The Italian Treasury holds nearly 30% of Terna, underscoring the significant corporate and governmental ties involved.