Telecom Italia (TIM) has announced that it will remove its current CEO and director, Amos Genish, from his role with immediate effect, as TIM's board struggle to control the company's mounting debts…
Telecom Italia (TIM) has announced that it will remove its current CEO and director, Amos Genish, from his role with immediate effect, as TIM's board struggle to control the company's mounting debts.
"TIM’s Board of Directors met today and deliberated by a majority vote to revoke with immediate effect all powers conferred to Director Amos Genish, giving mandate to the Chairman to resolve further obligations in relation to the existing working relationship with Genish," a spokesman for TIM said.
"In accordance with the succession plan for Executive Directors adopted by TIM, the proxies revoked to Director Amos Genish were provisionally assigned to the Chairman of the Board."
TIM appointed Genish as director in May 2018, following action by activist investor fund, Elliott, which wrested control away from key shareholder, Vivendi.
TIM has struggled with spiralling debt levels and recently abandoned plans to write down the value of its assets by around $2.3 billion. The company has not paid a dividend to its shareholders since 2013. With pressure mounting for the company to spend big on its 5G rollout plans, the board appears to have lost faith with Genish's stewardship.
TIM's board of directors will meet on the 18th November to identify a successor to Genish.
"The Board of Directors thanks Amos Genish for the work done in the interest of the Company and all its stakeholders in these fourteen months of intense activity," the TIM spokesperson said.