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Mediobanca, Prysmian, Unicredit when the Board of Directors chooses its successors

31 August 2020 Articles

The list of candidates, as presented by the Company's outgoing Board of Directors, for the renewal of the Board is becoming a practice in Italy, at least among large banks and companies, such as Generali and Mediobanca.

In an article published in Affari e Finanza, which analyses the risks and opportunities of this model, Morrow Sodali Managing Director Andrea Di Segni comments on the most innovative aspects, but also on the possible problems of a system that aims to contain the influence of the majority shareholders on the Board.

Di Segni considers the model "a very useful tool because it pushes companies to put in place clear practices and procedures to select candidates and run Board evaluation as a guarantee of transparency. This can also facilitate relations between Institutional Investors and the Board of Directors." At the same time, Di Segni underlined the need for "transparency in the processes" to prevent it from becoming "a suspicious mechanism, in which the Board tries to perpetrate itself."

Download the article here (in Italian).

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