Italy to seek pay cut for Eni, Enel, Finmeccanica managers

Fri Mar 28, 2014 2:30pm EDT
 
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ROME (Reuters) - Italy said on Friday it will back cuts of at least 25 percent to top managers' salaries at oil producer Eni (ENI.MI: Quote), utility Enel (ENEI.MI: Quote) and defense contractor Finmeccanica SIFI.MI at coming shareholders' meetings.

All three companies are controlled by the state but listed on the stock market, with government stakeholdings ranging from 30.2 percent in Finmeccanica and 31.2 percent in Enel to 44.3 percent in Eni.

The economy ministry said in a statement its representatives at the shareholder assemblies would vote for the proposals but added the result would depend on a vote by the majority of shareholders.

The proposed cuts were already foreseen in a law passed last year, but do not take effect until April 1, 2014.

Separately, the government also announced compulsory 25 percent cuts in top management pay at rail operator Ferrovie dello Stato FRSTO.UL, Poste Italiane PSTIT.UL, the post office group which is due to be partially privatized, and state investment holding Cassa dei Depositi e Prestiti CDP.UL.

With Italy suffering the highest unemployment seen since the 1970s, Prime Minister Matteo Renzi has vowed to bring down the salaries of Italy's public sector managers.

There will be no absolute management pay limit at any of the companies but the reductions from last year's salaries bolster Renzi's attack on waste and elite privilege.

PAY MUCH HIGHER IN GERMANY

The move could also fuel criticism that the heads of Italian multinationals will earn less than foreign competitors.   Continued...

 
The logo of oil company Eni-Saipem is pictured at its headquarters in Rome February 8, 2013. REUTERS/Alessandro Bianchi