MILAN, April 3 (Reuters) - Leading proxy adviser Glass Lewis on Friday urged shareholders in Monte dei Paschi di Siena to back a slate of board candidates proposing to name Fabrizio Palermo, the
Glass Lewis Endorses Board Slate with Palermo as CEO for Monte dei Paschi
Proxy Advisers Influence Monte dei Paschi Board Election
MILAN, April 3 (Reuters) - Leading proxy adviser Glass Lewis on Friday urged shareholders in Monte dei Paschi di Siena to back a slate of board candidates proposing to name Fabrizio Palermo, the current CEO of utility Acea, as chief executive on April 15.
Key Decisions for Monte dei Paschi Shareholders
Monte dei Paschi (MPS) shareholders are called to elect a new board at Italy's third-largest lender and choose whether to hand current CEO Luigi Lovaglio a new term or pick Palermo, as proposed by the bank's board.
Glass Lewis Recommendation
Glass Lewis said the board's slate best balances continuity and change at a critical point for the bank, preserving institutional knowledge while enabling a planned transition in top leadership following the acquisition of merchant bank Mediobanca.
Alternative Slate Proposed by PLT Holding
It said that at MPS's annual general meeting shareholders should not vote for an alternative slate put forward by MPS investor PLT Holding, which is proposing handing Lovaglio another term.
Other Proxy Adviser Recommendations
This week rival proxy adviser International Shareholder Services also advised backing the list of candidates put forward by MPS' outgoing directors with Palermo as CEO.
ISS Arguments and Voting Process
ISS argued a second vote would then give shareholders a chance to reject individual nominees such as the MPS chairman and the head of the appointment committee.
Italian Board Election Rules
Under Italian rules the board's slate of nominees is subject to two round of voting, unlike shareholders' lists.
(Reporting by Andrea Mandala, writing by Gavin Jones)
