Paschi board list does not include outgoing CEO Lovaglio
TL;DR
Banca Monte dei Paschi di Siena's nomination committee excluded CEO Luigi Lovaglio from its board candidate list, signaling his likely departure. This follows tensions over his strategy, including the Mediobanca acquisition and integration plans. The final board will be decided by shareholders in April, marking a key transition for Italy's largest bank.
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Paschi board list does not include outgoing CEO Lovaglio
Paschi Board List Does Not Include Outgoing CEO Lovaglio
Banca Monte dei Paschi di Siena SpA’s nomination committee has excluded Chief Executive Officer Luigi Lovaglio from its proposed list of 20 candidates for a new board of directors, signaling his likely departure as the bank’s leader. The slate, set for board approval on March 6, omits Lovaglio despite his inclusion in an earlier preliminary list of 30 candidates drawn up by outgoing directors. The final board composition will be decided by shareholders on April 15, following regulatory approvals.
Lovaglio, 70, has led the historic lender since 2022, overseeing its turnaround from near-collapse and a landmark €17 billion acquisition of Mediobanca in 2025. While the merger was initially hailed as a strategic triumph, tensions emerged over his integration plans, including Mediobanca’s potential delisting, which sparked disagreements with board members and key shareholders like Francesco Gaetano Caltagirone. A judicial probe into the Mediobanca deal, which Lovaglio denies wrongdoing, further complicated his tenure.
The nomination committee’s shortlist includes prominent figures such as former Illimity CEO Corrado Passera, Acea SpA CEO Fabrizio Palermo, and ex-UniCredit executive Carlo Vivaldi according to reports. The decision reflects growing investor and board concerns over Lovaglio’s strategy, which failed to meet market expectations despite his earlier success in restoring profitability to Monte Paschi.
Italy’s government, which holds a 4.9% stake in the bank, has distanced itself from governance decisions, with Prime Minister Giorgia Meloni stating its role “has ended” according to official statements. The outgoing board previously confirmed all members, including Lovaglio, met regulatory "fit and proper" criteria.
With the new board’s approval pending, the bank’s next CEO will be determined by the reconstituted leadership, marking a pivotal moment for Italy’s largest bank by assets. Shares of Monte Paschi (BMPS.MI) have faced volatility amid leadership uncertainty.
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