Glass Lewis & Co, a well-known proxy advisory firm, has called on Enel’s shareholders to reject the choice of the Italian government for the company’s future president, instead supporting an alternative candidate.
According to a report by the advisor consulted by Bloomberg, Glass Lewis backs Marco Mazzucchelli, initially proposed by the London fund Covalis Capital, which holds about 1% of Enel shares. Shareholders will vote for the company’s new board on May 10.
Covalis Capital has spoken out against the government’s slate of candidates, calling the nomination process “opaque”. Mondrian Investment Partners, which claims to own about 1.7% of Enel, also announced Friday that it was voting for the list that includes Mazzucchelli, who is in favor of an “independent” president.
The dispute constitutes an important challenge for the right-wing government of Giorgia Meloni, which has chosen Paolo Scaroni, former CEO of Eni, as its candidate.
Not all consultants agree on the future of the company. Proxy advisor Institutional Shareholder Services, for example, recommended backing Scaroni as chairman.