Severance Pay Standoff: Terna CEO's Departure Dilemma

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.

(With inputs from agencies.)