WTI Magazine #26    2014 Apr, 18
Author : Francesca Papasergi      Translation by:

Some of the most prominent Italian public companies have the same, specific characteristic: the government owns their golden shares. This implies that their CEOs' and presidents' names depend from governamental decision. Matteo Renzi is in charge now and his recent designations ignited polemics, as it happens since time immemorial for every government's decision in this field.

The "toto-nomi" (names lottery) starts months in advance and it is subjected to political alliances and conveniences. Why these companies are so important is easy to understand. First of all, they have a key role for the government, because it's through them it deploys its energetic and industrial policies. Secondarily, they employ thousands of people.

Nevertheless, Mr. Renzi's choices aren't as revolutionary as they seem. Even if women reached some presidential office - and it is a success, of course - the executive assignments keep standing in men's hands solidly.

The chosen ones' names are also arguable. Many of them have their own multinational business to run, and people like Emma Marcegaglia are already facing some conflict of interest's allegations. Can you represent your own company and your supplier/competitor's? Mr. Renzi had told he would have made a U-turn on this issues, leaving the conflict of interest to the Berlusconi era.

After the latest controversies, will Mauro Moretti – the former Trenitalia's CEO, now at Finmeccanica – cope with an income reduction or not? The spending review project includes cuts for state-owned company managers's compensations, and Mr. Renzi's reliability is also based on his promises to complete this operation.

Italy's jewels need a full time commitment and a good administration: the country deserves growth after years of stagnation. It's up to the new managers to show they have the ability to guarantee their companies a bright future.