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Banco BPM board shake-up: Credit Agricole eyes bigger role
4 Mar
Summary
- Banco BPM's board proposed a slate without Credit Agricole representatives.
- Credit Agricole aims to increase board influence by filing its own slate.
- Banco BPM recently changed rules to give minority shareholders more seats.
Banco BPM has revealed the list of candidates its current board intends to propose for the upcoming April board renewal. The slate notably omits any representatives from Credit Agricole, the bank's largest shareholder. This absence indicates that the French banking group is likely to file its own slate of candidates.
Credit Agricole's strategic move follows its increased investment in Banco BPM, initially made in 2022 to safeguard commercial partnerships. The banking group's CEO recently stated their intention to seek stronger board representation after raising their stake beyond 20%.
These developments occur shortly after Banco BPM approved significant changes to its board appointment system. The revised rules will allocate up to six seats on the 15-member board to minority shareholders, an increase from the previous three.
Under the new regulations, the outgoing board's proposed slate could secure up to 12 seats if it garners the largest share of votes. Filing a separate slate would enable Credit Agricole to contend for as many as four board seats, potentially impacting the influence of institutional investors.
