Why is Luigi Lovaglio expected to be excluded from the Monte dei Paschi board?

Luigi Lovaglio is expected to be excluded from the Monte dei Paschi di Siena board due to a boardroom clash, particularly concerning his plans to acquire the remaining 14% of Mediobanca.

What role did Mediobanca play in the Monte Paschi CEO's situation?

The CEO's pursuit of acquiring the remaining 14% of Mediobanca and delisting it has led to significant disagreements within the Monte Paschi di Siena board, weakening his position.

Will Luigi Lovaglio be nominated by a shareholder for a new mandate at MPS?

Although removed from the board's nominated list, Luigi Lovaglio could potentially be put forward for a new mandate by a shareholder, but he has not yet decided whether he wishes to stay on.

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MPS CEO Lovaglio Set for Board Exit Amid Power Struggle

4 Mar

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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.

MPS CEO Lovaglio Set for Board Exit Amid Power Struggle

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.

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