Telecom Italia CEO Flavio Cattaneo, 54, leaves after 16 months with one of the richest golden parachutes ever granted in Italy. “That generous incentive package the board had approved for Cattaneo was biased toward achievement of short-term goals and so his early exit is a natural consequence,” said Giuliano Noci, professor of strategy and marketing at Milan Polytechnic. He said the telecom sector is facing a historical transformation and Telecom Italia should be pursuing a digital strategy. “Those short-term incentives take the company in the opposite direction.”

French media group Vivendi is Telecom Italia’s biggest shareholder, with a 24 percent stake. And Vivendi is now set to place its chief convergence officer, Amo Genish, in a senior role in Milan. The company will discuss succession on July 27, when the board meets to approve second-quarter earnings. Genish is expected to be named general manager of Telecom Italia.