Who and how did you appoint Padoan to Unicredit?
What is said and not said about the arrival of the former Pd Minister of Economy, Pier Carlo Padoan, at the top of Unicredit. Facts, names, reconstructions and controversies
How and why did the former Minister of Economy, Pier Carlo Padoan, reach the top of Unicredit?
Unicredit did not communicate the composition of the Task Force that helped the board of directors for the appointment of Padoan as president of Unicredit. The only information available, namely that the decision-making unit was made up of four independent directors, emerged from an interview with the former Minister of Economy by Corriere della Sera . Padoan, answering the questions of Federico Fubini del Corsera, also specified that his appointment is not of a political nature, that the exit of the CEO Jean Pierre Mustier is linked to "diversity of opinions" between the CEO and the Board essentially on the steps to be taken for the integration strategy outside Italy. In this context, the Financial Times offers some reflections on Mustier's project, which was later abandoned, relating to the creation of a subholding to be listed in Frankfurt. In summary, if the importance of the appointment of Padoan as president of Unicredit is not discussed given the high standing of the character, the perplexities about the possible reasons behind his appointment and the ways in which the position was assigned cannot be are missing.
But let's go over the official acts that brought the former Treasury holder to the Unicredit board of directors and who in the coming days will be president of the banking group in place of Cesare Bisoni.
THE COMMUNICATION ON THE APPOINTMENT OF PADOAN
Unicredit in a press release dated 13 October 2020 reported that "the Board of Directors, with the support of a Task Force made up of independent directors headed by Vice President Lamberto Andreotti, unanimously co-opted Prof. Pier Carlo Padoan as non-executive director , after having identified him as the best candidate for the position of President of Unicredit for the next term (2021-2023). The same will remain in office as director until the meeting called to approve the 2020 financial statements and renew the entire Board of Directors ".
THE COMPOSITION OF THE TASK FORCE
Unicredit has not communicated the composition of the Task Force. The only information on this aspect came from an interview that the former Minister of Economy gave to Corriere della Sera . “The process that led to my selection was rigorous and transparent, managed by a task force of four independent directors,” said Padoan. No one doubts that the selection process took place correctly, but perhaps, as Alessandro Graziani of Sole24Ore notes , it would be appropriate to clarify to the market and to the bank's owners how and why a decision-making entity of unknown composition was added to the official corporate bodies. .
PADOAN CLAIMS THAT HIS APPOINTMENT IS NOT OF A POLITICAL NATURE
Padoan then specified that his appointment is not of a political nature. The former Pd Minister of Economy pointed out that “political interference, real or presumed, can only harm. Not only to a bank and to banks: also to the country as a whole, especially in a difficult phase like this. But in the decisions taken by Unicredit, political interference did not play any role. Neither as regards the appointments of the top figures, nor for the dossiers submitted to the examination of the Council. To be clear: the fact that I have held government positions in the past does not in any way mean that I am in Unicredit to represent instances of politics. Neither on acquisitions, nor on other strategic choices. My responsibility is towards the shareholders and the company ”.
THE MPS DOSSIER
Padoan's clarifications should also be read in the light of the Monte dei Paschi di Siena dossier. There was no lack of those who read his appointment and the subsequent farewell of the CEO, Jean Pierre Mustier, as an increase in the probability for the scenario of acquisition of Mps by the bank in Piazza Gae Aulenti.
THE RELEASE OF MUSTIER
Commenting on the CEO's recent move, Padoan was keen to specify that “Monte dei Paschi had no role in Mustier's decision to leave Unicredit at the end of the current mandate. Moreover, its decision does not in any way change the position of the bank with respect to any transaction in this regard ". The former holder of the dicastery in via Venti Settembre spoke of "differences of opinion" between Mustier and the Board of Directors essentially on the steps to be taken for the integration strategy outside Italy. “The strategies on which we agree are not in question. It is on the modalities that different visions emerged ”, Padoan pointed out.
SUBHOLDING PROJECT ABANDONED TO PRESERVE UNICREDIT ITALIANITY
Relations between Mustier and the Board of Directors began tocorrode the project of the CEO of Unicredit relating to the creation of a subholding in which to incorporate the foreign assets of the bank to be listed in Frankfurt. For the Financial Times, the project would have had a notable advantage: reducing financing costs for debt issuance and regulatory capital through a German entity. But the plan did not go through as the 14 members of the Unicredit Board of Directors (including 10 Italians) turned up their noses at a move that could have affected the bank's Italian character. Thus, continues the Financial Times, when Padoan had to choose between a CEO who was appreciated among the shareholders and a Board of Directors that Mustier had complained about because he was weak and too focused on Italy, he preferred the latter. By canceling the German subholding plan, the Padoan financial newspaper did not put the interests of shareholders first. According to the Financial Times , the former Minister of Economy wishes to further strengthen and internationalize the Board of Directors. But while headhunters are looking for Mustier's successor, a bet seems certain: the new CEO will be Italian.
PADOAN LISTES THE CHARACTERISTICS OF THE NEW AD
Speaking of the characteristics of the new CEO, Padoan reported in the interview that the CEO must have "a strong international standing, consolidated knowledge of the banking system, inclusive leadership and strategic vision".
PADOAN APPRECIATED BUT PERPLESSITIES REMAIN
In the light of these reflections, it is clear that if on the one hand the figure of Padoan is extremely appreciated, on the other hand there is no lack of perplexities about the possible reasons behind his appointment and the methods of assigning the position. Among the countless comments that came in the wake of the appointment of Padoan as president of Unicredit, we recall that of Banca Akros according to which the "international profile" of the former Minister of Economy represents "a guarantee" for Unicredit.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/chi-ha-nominato-padoan-in-unicredit/ on Mon, 07 Dec 2020 14:34:44 +0000.