ENI Reaffirms Commitment to Embattled CEO
May 13 2020 - 11:18AM
Dow Jones News
By Sarah McFarlane and Eric Sylvers
Italian energy giant ENI SpA appointed Chief Executive Claudio
Descalzi to a third term, the company said on Wednesday.
The appointment comes as Mr. Descalzi fights charges in a Milan
court that he orchestrated the company's $1.3 billion payment for
drilling rights in Nigeria with the understanding that most of the
money would be paid out in bribes.
Mr. Descalzi, who was appointed to the top job in 2014, has
denied any wrongdoing and ENI has backed him throughout the
multiyear case. The verdict, which had been expected in the first
half of this year, has been delayed due to the coronavirus pandemic
that forced Italy into a nationwide lockdown and the suspension of
almost all work in the judicial system, including Mr. Descalzi's
case.
Mr. Descalzi, 65, had sought another term as CEO, but he said in
an interview earlier this year, that he would consider resigning if
found guilty. The first verdict can be appealed twice.
The extension of Mr. Descalzi's tenure comes as the virus has
tanked oil demand, with benchmark oil prices sinking by half since
mid-February. ENI's share price has fallen by around 38% since the
start of the year, in line with other oil majors including BP PLC
and Total SA.
The Italian government, which owns 30% of ENI, picked the
company's CEO and chairman, who were then confirmed by shareholders
at ENI's annual shareholder meeting on Wednesday. Lucia Calvosa, a
law professor specialized in commercial law, will replace Emma
Marcegaglia as chairwoman.
Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Eric
Sylvers at eric.sylvers@wsj.com
(END) Dow Jones Newswires
May 13, 2020 11:03 ET (15:03 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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