Pirelli’s new board appointed amid dispute over Chinese influence
Pirelli's new board appointed amid dispute over Chinese influence
Pirelli Investors Approve New Board, Restructuring Amidst Government Intervention
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MILAN, July 31 (ANBLE) – Pirelli, the renowned Italian tyremaker, has recently undergone a major restructuring and governance shake-up after the Italian government intervened to curb the influence of its leading Chinese investor. In a move hailed by investors, the new board has been approved and a comprehensive three-year governance plan has been put into effect.
A Change of Leadership
One of the key changes within Pirelli’s new board is the appointment of Andrea Casaluci as the company’s CEO. Previously serving as the General Manager Operations, Casaluci steps into the shoes of Marco Tronchetti Provera, the Italian businessman who had been in charge since 1992. Despite stepping down as CEO, Tronchetti Provera remains a strong voice within the company as he assumes the role of executive vice chairman.
Power Shifts
The restructuring of Pirelli’s board also marked an important shift in the balance of power, with the appointment of Jiao Jian as the new chairman. Jiao Jian is the chief executive of Sinochem, Pirelli’s leading shareholder and a state-owned Chinese group. This move showcases the growing influence of Chinese investors in the global market, particularly within key industries like automotive.
This power dynamic between the Italian government, Chinese investors, and other shareholders was shaped by the use of “golden power” legislation. This legislation, which aims to protect key national assets, allowed the Italian government to impose restrictions on the governance pact between Sinochem and Camfin, Tronchetti Provera’s vehicle and Pirelli’s second-largest shareholder.
Despite Sinochem holding a larger stake (37%) than Camfin (14.1%) in Pirelli, the intervention boosted Camfin’s influence. Under the new governance agreements, Camfin retains the power to designate Pirelli’s CEO and set strategies, with limited influence granted to Sinochem on the company’s management.
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Formation of the New Board
The new board consists of fifteen members, twelve of whom were appointed from a majority slate presented by Sinochem. Notably, four board members, including Casaluci and Tronchetti Provera, were indicated by Camfin. This composition reflects the amended governance agreements and ensures representation from both the Chinese and Italian stakeholders.
Shareholder Approval
Pirelli’s investors, which include China’s state-owned Silk Road Fund (9% stake) and Italian brakes maker Brembo (around 6% stake), have overwhelmingly approved the new board. Approximately 84% of the shareholding represented at the meeting voted in favor of the restructuring. The high level of shareholder participation demonstrates the confidence and support in Pirelli’s new direction.
Looking Ahead
With the approval of the new board and the implementation of a three-year governance plan, Pirelli is well-positioned to navigate the challenges and opportunities within the ever-evolving automotive industry. The collaboration between Italian and Chinese stakeholders signifies the global nature of business and its ability to adapt to changing market dynamics.
As Pirelli continues to thrive as a leading tyre supplier for Formula One motor racing, the company’s new leadership and governance structure will play a crucial role in guiding its future growth and success. The merging of diverse perspectives and expertise is bound to create a unique blend of innovation and tradition, honoring Pirelli’s rich heritage while embracing the opportunities of the digital era.
