Telecom Italia shareholders have reportedly been advised to vote against the proposed appointment of four high profile Vivendi executives to its board by a leading proxy advisory firm.

Institutional Shareholder Services (ISS) guides the voting of many institutional investors in a number of sectors, and is considered one of the top firms in its field.

Telecom Italia confirmed last week it would add Vivendi’s request, which proposes the appointment of four executives to its board, to the agenda for its next shareholder meeting scheduled for 15 December.

Those put forward for the seats include CEO Arnaud de Puyfontaine, COO Stephane Roussel, CFO Herve Philippe and consultant Felicite Herzog, a move that would increase the board from 13 to 17.

At the meeting, shareholders are also due to vote on a proposal to convert its saving shares into ordinary stock, thus diluting the French group’s holding to below 14 per cent from 20.1 per cent, which currently makes it the largest shareholder.

As the French group seeks a say on Telecom Italia’s wider strategy, ISS recommended that shareholders vote in favour of converting the shares into ordinary stock and vote against the appointment of the four executives, reports Reuters.

The recommendations follow reported concerns expressed by Telecom Italia’s investment fund shareholders, which combined control 65 per cent of the company’s share capital.

Reuters reports a group of funds also wrote to Vivendi’s chief executive and influential chairman Vincent Bollore asking for more details over the request.

Frontis Governance, a smaller domestic proxy fund, has also advised investors to vote against Vivendi’s proposals, and back the conversion of savings stocks.

“With four directors out of a total of 17, Vivendi would have 23 per cent of Telecom Italia’s board when its stake in the company is set to fall to around 14 per cent,” said the firm’s founder Sergio Carbonara, reports Economic Times.

ISS’ rival Glass Lewis, another leading proxy advisory firm, is set to release its recommendation on the matter in the coming days.