STMicroelectronics Stands by CEO Amid Italian Government Opposition

Published 15 days agoSTM

STMicroelectronics Stands by CEO Amid Italian Government Opposition

STMicroelectronics has reiterated its support for CEO Jean-Marc Chery and his leadership team, despite opposition from the Italian government. The affirmation from the semiconductor giant highlights its confidence in Chery's capabilities to navigate the company through current challenges.

Italy has expressed dissatisfaction with Chery’s leadership, primarily due to difficulties in STMicroelectronics' key markets, such as automotive and industrial segments. According to Yahoo Finance, the Italian government, which holds a significant stake in the company, is also facing resistance against its efforts to appoint Marcello Sala, an official from its economy ministry, to the STMicroelectronics supervisory board.

The company has refuted claims that its management misled investors through strategic share sales prior to releasing negative earnings reports. STMicroelectronics clarified that these transactions occurred during sanctioned blackout periods. This comes amid the company's forecasted revenue drop of 28% in the first quarter, which has intensified the scrutiny surrounding its leadership.

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