Monte Paschi approves slate of candidates for board renewal

Monte Paschi approves slate of candidates for board renewal

Monte Paschi Approves Slate of Candidates for Board Renewal

Banca Monte dei Paschi di Siena SpA (BMPS.MI) has advanced its board renewal process, approving a preliminary list of candidates for its April 15 shareholder vote, according to sources familiar with the matter. The outgoing board finalized a long list of 30 nominees, including current CEO Luigi Lovaglio and Chairman Nicola Maione, as part of efforts to reduce the board size to 20 members. However, Lovaglio's inclusion in the shortlist remains uncertain, as recent reports indicate he was excluded from the narrowed 20-name list.

Italy's Treasury, despite holding a 4.9% stake in the bank, has opted not to intervene in the selection process or endorse specific candidates, aligning with its re-privatization commitments to the European Union. This decision follows the government's return of Monte Paschi to private ownership between 2023 and 2024 after its 2017 bailout. The Treasury had previously signaled support for Lovaglio's reappointment but has since adopted a neutral stance.

Key candidates under consideration include former UniCredit executive Carlo Vivaldi, veteran banker Corrado Passera, and Fabrizio Palermo, CEO of utility Acea SpA and a Generali board member. Passera, 71, has indicated openness to the chairmanship role if Maione is not reconfirmed but has ruled out a CEO position. Maione, meanwhile, is expected to secure reappointment.

The board renewal process faces a March 5 deadline to finalize nominees, contingent on European Central Bank approval of amended by-laws. Concurrently, Lovaglio is set to unveil a new multi-year strategy for the combined Monte Paschi-Mediobanca entity following the bank's landmark share-and-cash acquisition of its rival last year. The strategy aims to achieve €300 million in cost efficiencies while expanding in asset management and insurance.

Shareholder dynamics remain complex, with controlling investor Delfin supporting Lovaglio but secondary shareholder Francesco Gaetano Caltagirone opposing his reappointment. The outcome of the board vote will shape the bank's governance and strategic direction amid ongoing regulatory scrutiny and restructuring efforts.