Finance
Board of Italy's Terna to Meet on CEO Severance Pay, Source Says
Published by Global Banking & Finance Review®
Posted on April 20, 2026
2 min readLast updated: April 20, 2026
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Terna’s board is set to hold an extraordinary meeting within days to address the 7.3 million‑euro severance claim of outgoing CEO Giuseppina Di Foggia, nominated to chair Eni, amid government pushback on state‑controlled firms’ executive payouts.
Terna Board to Meet on CEO Giuseppina Di Foggia's Severance Pay Amid Eni Role
Overview of Terna CEO Severance Pay Dispute
Extraordinary Board Meeting Scheduled
MILAN, April 20 - Italy's state-controlled power grid operator Terna will hold an extraordinary board meeting in the next few days to discuss the severance pay of its outgoing CEO, a source close to the company told Reuters on Monday.
Giuseppina Di Foggia's Nomination and Severance Package
Giuseppina Di Foggia has been nominated as chair of Eni by the Italian government, but is unwilling to give up a 7.3 million euro ($8.6 million) severance package from Terna.
Board's Previous Actions
Terna's board met on Monday, but did not discuss her case, the source said. On Sunday, Italy's economy ministry said it was against state-backed groups paying severance packages to executives whose terms expire or who resign voluntarily.
Upcoming Deadlines and Contractual Details
The issue must be resolved before May 6, when Eni holds its shareholders' meeting. By then, Di Foggia must step down as Terna's chief executive to take up the new role.
The source, who spoke on condition of anonymity because the issue is private, said Di Foggia's contract did not include a clause preventing her from receiving severance pay at the end of the mandate or in case of an early resignation.
Political and Economic Implications
Government's Position and Broader Context
The dispute is politically awkward for Prime Minister Giorgia Meloni's government, at a time when rising energy costs due to the Iran war weigh on households and firms.
State Ownership in Terna and Eni
Italy's Treasury owns a 29.85% stake in Terna through state lender CDP. The ministry and CDP also control Eni with a combined 33.1% shareholding.
($1 = 0.8500 euros)
(Reporting by Giancarlo Navach, editing by Alvise Armellini and Alexander Smith)
Key Takeaways
- •Terna will convene urgently to resolve a severance dispute involving CEO Giuseppina Di Foggia, who seeks a €7.3 million exit package.
- •Italy’s economy ministry publicly opposes such severance payments for voluntarily departing executives at state‑backed companies.
- •The matter gains political sensitivity as Di Foggia transitions to chair Eni before its May 6 shareholders’ meeting, and both Terna and Eni are under significant state influence via CDP.
Frequently Asked Questions about Board of Italy's Terna to meet on CEO severance pay, source says
1Why is Terna's board meeting about CEO severance pay?
The board is meeting to discuss outgoing CEO Giuseppina Di Foggia's €7.3 million severance package as she transitions to Eni.
2What position has Giuseppina Di Foggia been nominated for?
Giuseppina Di Foggia has been nominated as chair of Eni by the Italian government.
3Is Di Foggia entitled to severance pay if she resigns early?
According to a source, Di Foggia's contract does not prevent her from receiving severance at the end of her mandate or in case of early resignation.
4When must the severance pay issue be resolved?
The issue must be resolved before Eni's shareholders' meeting on May 6, when Di Foggia must step down from Terna.
5What is the government's stance on executive severance packages?
Italy's economy ministry opposes state-backed groups paying severance to executives whose terms expire or who resign voluntarily.
