Monte dei Paschi CEO Defies Board to Secure New Term

CEO Lovaglio Contests Ouster Ahead of April 15 Vote

A corporate battle has intensified at Monte dei Paschi di Siena as CEO Luigi Lovaglio directly challenges the bank's board of directors. On March 21, Lovaglio launched a formal bid to secure another term, defying the board's recent decision to exclude him from its slate of candidates. The board is expected to officially challenge his position on March 23.

This countermove gained significant traction when investor PLT Holding, the investment vehicle of the Tortora family, leveraged its 1.2% stake to file its own list of board nominees, with Lovaglio proposed for reappointment as CEO. The move forces a showdown at the upcoming shareholder meeting scheduled for April 15, where investors will vote on the bank's future leadership.

Mediobanca Strategy Drives 86% Ownership Rift

The core of the conflict is a fundamental disagreement over the strategic future of Mediobanca, a rival lender in which MPS acquired an 86% stake under Lovaglio's leadership. The CEO has championed a plan to acquire the remaining 14% of Mediobanca, take the firm private, and then spin off its private and investment banking operations into a separate, unlisted entity.

This strategy has met resistance from influential stakeholders, including leading MPS investor Francesco Gaetano Caltagirone, who reportedly favors keeping Mediobanca as a publicly listed company. The division highlights a critical crossroads for MPS: whether to fully consolidate its acquisition or maintain a more flexible ownership structure.

Leadership Crisis Creates Strategic Uncertainty

The escalating power struggle introduces significant uncertainty for investors. While Lovaglio has secured the public backing of MPS's main shareholder, Delfin, another key stakeholder, the Italian Treasury, has taken a less active role in the CEO selection process following an unrelated insider trading probe that cost it a board seat. The outcome of the April 15 vote will not only determine the CEO but also signal the bank's strategic path forward, with major implications for its valuation and the integration of the pivotal Mediobanca asset.