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MPS CEO Lovaglio Set for Board Exit Amid Power Struggle
4 Mar
Summary
- CEO Luigi Lovaglio may be excluded from the MPS board.
- A boardroom clash over Mediobanca acquisition has weakened his position.
- The board nomination committee removed Lovaglio from a candidate list.
A significant boardroom conflict at Monte dei Paschi di Siena (MPS) is poised to result in the exclusion of Chief Executive Luigi Lovaglio from the list of candidates for a new board mandate. The bank's board is preparing a slate for an April shareholder vote to appoint new leadership, including the CEO and chairman.
Initially included in a preliminary list of 30 candidates, Lovaglio was subsequently removed by the board's nomination committee from a shorter list of 20. His efforts to acquire the remaining 14% of Mediobanca and delist it have reportedly irked major shareholder Francesco Gaetano Caltagirone and some directors. The situation has been further complicated by a criminal probe into the Mediobanca takeover and a more reserved stance from the Italian government, which retains a 4.9% stake in MPS.
While Lovaglio could potentially be nominated by a shareholder, his decision on whether to seek another term remains undecided. He has been supported by MPS's largest shareholder, Delfin, though this vehicle is currently experiencing internal disagreements among the heirs of its late founder.
