Italian government wants to replace ST’s CEO, says report
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The Italian government, a joint shareholder with the French government in STMicroelectronics, is pressing for the European chip giant’s CEO Jean-Marc Chery to step down, according to Les Echos.
The report references sources within the Italian Ministry of Economy saying they are ready “to thank Jean-Marc Chery.”
The Italian government is reported to be concerned about poor financial results and a shift of the power base within the company towards France, the report says. The balance of the executive committee that runs ST has changed from five Italians out of eight to three Italians out of nine, the report added.
ST has reported poor results for 2024 with signs that the situation will not improve at least until the 2H25 or possibly 2026, depending on global economic and geo-political developments.
ST forecasts a big first quarter revenue drop
The Italian ministry is also reported to be concerned that the burden of a plan to cut about 3,000 jobs or 6 percent of the workforce, could fall disproportionately on Italian employees.
The Italian ministry may also be getting its lobbying in early to try and ensure the next CEO of ST is an Italian as were Chery’s two predecessors, Pasquale Pistorio and Carlo Bozotti.
The French and Italian governments are 50:50 partners in a holding company that controls about a third of the shares in ST with about two thirds of the shares traded on the New York, Paris and Milan stock exchanges.
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