MILAN, April 23 (Reuters) - Newly appointed directors at Monte dei Paschi di Siena were set on Thursday to hand all key board positions to supporters of reinstated Chief Executive Luigi Lovaglio, a
Monte dei Paschi Assigns Key Board Roles to CEO Lovaglio’s Supporters
Boardroom Changes and Strategic Implications at Monte dei Paschi
Lovaglio's Reinstatement and Boardroom Dynamics
MILAN, April 23 (Reuters) - Newly appointed directors at Monte dei Paschi di Siena were set on Thursday to hand all key board positions to supporters of reinstated Chief Executive Luigi Lovaglio, a person close to the matter said.
Investors in Monte dei Paschi (MPS) voted on April 15 to bring Lovaglio back at the helm, reversing a shock decision by the outgoing board of directors in March to oust him as CEO following a boardroom and shareholder clash over plans for Mediobanca, which MPS acquired last year.
Shareholder Meeting and Board Composition
At the April 15 annual shareholder meeting, Lovaglio's supporters - led by small investor PLT Holding - got enough votes to secure eight board seats. Their opponents were awarded six on the 15-strong board.
The source said the winning side would get the chairmanship of the board and the leadership of the various board committees on Thursday, when the new board meets for the first time and Lovaglio is formally reinstated as CEO.
Attempts at Compromise and Strategic Direction
Lovaglio's opponents have been trying to propose a compromise solution that would have seen them get at least one key board role, but the idea was rejected, the source said.
That could help ensure smoother sailing for the strategy Lovaglio had presented just before being pushed out, centred around merging Mediobanca into MPS.
Impact of Mediobanca Acquisition and Major Investors
Through Mediobanca, MPS has become the main investor in Generali, Italy's biggest insurance group, alongside the Del Vecchio and Caltagirone families.
The two families are also the biggest MPS investors, following the bailed out bank's return to private hands.
State Rescue and Reprivatisation
MPS was rescued by the state in 2017 and reprivatised between 2023 and 2024 with dozens of international funds and, finally, the two families helping the government cut its stake below 5% from 68%.
Key Shareholder Moves
Delfin, the holding company of the Del Vecchio family, last week voted to bring Lovaglio back, while Francesco Gaetano Caltagirone backed the failed attempt to push him out.
(Reporting by Valentina Za; Editing by Susan Fenton)
