(Alliance News) - Telecom Italia Spa announced Thursday that the board of directors met for an update on ongoing activities and to define initiatives to be taken in relation to the renewal of the board of directors, which will expire with the approval of the financial statements as of Dec. 31, 2023.

In view of this renewal, "in compliance with the recommendations of the Corporate Governance Code of Borsa Italiana" and "in light of the outcomes of the Board Review," the board considers it appropriate to reduce the number of its members, from the current 15 to nine, "consistent with the long-term trend in comparable companies, with the practice in place in several large listed companies and with the opportunity for a containment of the living costs of corporate governance," the statement reads.

"In view of the prospective evolution of the company's activity and its business scope consequent to the execution of the Delayering Plan, the appointment of a nine-member board of directors appears appropriate," the company points out.

In addition, "in view of the need to give continuity to the current actions in a very delicate and unique passage of change in the corporate reality," TIM specifies, the board "has unanimously decided to avail itself of the faculty, in accordance with the bylaws and in compliance with best practice, to present its own list that aspires to be a majority one, as was the case in the previous renewal."

The process will go through an initial phase of surveying the shareholder base and market representatives, dealing exclusively with the qualitative-quantitative profiles of board composition, consistent with the company's engagement policy, to proceed, first, to the definition of these profiles and the drafting of a first and broad list of possible candidates and, finally, of a short-list, with the technical support of an executive search consultant.

Coordination of the activities has been entrusted to Chairman Salvatore Rossi, as an independent and super partes figure and who, moreover, has already communicated that he will not stand for reelection; he will also be in charge of keeping the board of directors constantly updated on the progress of the process, which will make all determinations within its competence, with the support of the nominations and compensation committee.

Telecom Italia on Thursday closed 1.4 percent in the red at EUR0.28 per share.

By Chiara Bruschi, Alliance News reporter

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