Italy’s Generali fires CEO’s internal rival in power struggle

(Reuters) — Generali has fired executive Luciano Cirina, who is challenging incumbent Philippe Donnet for the role of CEO, for alleged breach of contract, Italy’s largest insurer said Monday.

Mr. Cirina, who was Generali’s head of Austria and CEE countries, has been proposed by a leading shareholder in the group for the top job in a power struggle that will be put to a shareholder vote on April 29.

“The decision has been taken due to violations of his duty of loyalty and material breach of other personal obligations under his contract of employment,” Generali said in a statement.

There was no immediate comment from Mr. Cirina.

Generali had suspended Mr. Cirina last week, and he then presented his alternative plans for the insurer at a news conference in Milan on Friday, along with Claudio Costamagna, the rebel shareholder’s candidate to chair the group.

Francesco Gaetano Caltagirone, who owns more than 9% of Generali, wants to replace Mr. Donnet, who has been CEO since 2016, and install Mr. Cirina in his place.

Mr. Caltagirone’s camp on Friday detailed a plan dubbed “Awakening the Lion,” a reference to Generali’s nickname “The Lion of Trieste.” They want to boost earnings growth and do bigger M&A deals.

The Generali board has proposed Mr. Donnet for a third term.

Generali shares rose 4% on Monday to their highest level in more than a decade.