Powerful corporate networker Cesare Geronzi, a symbol of old-style Italian capitalism, unexpectedly quit as chairman of Generali after clashing with directors over strategy. Geronzi, a 76-year-old former banker appointed a year ago at the helm of Europe's third-largest insurer, faced a no-confidence vote from a majority of board members at an emergency meeting called on Wednesday to discuss his powers, several sources familiar with the matter said.
Geronzi decided that "as a result of the situation that has developed owing to differences that prevent his involvement in Generali, to resign today from the post of chairman", Generali said in a statement. Vice Chairman Francesco Gaetano Caltagirone will take over as interim chairman.
The no-confidence motion took the veteran financier by surprise as he only learnt about it one hour before the meeting was due to start, a shareholder source told Reuters. His exit from Italy's No 1 insurer marks the end of an era for Geronzi, a controversial corporate insider with close links to Prime Minister Silvio Berlusconi who had formerly led top banks Capitalia and Mediobanca. The news triggered a rally of up to 5 percent in Generali shares, which had lagged peers largely because of what analysts said was Geronzi's excessive meddling in company strategy despite his non-executive role.
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