MILAN, March 26 (Reuters) - Shares in Italy's Nexi fell in early Thursday trade, underperforming a weak Milan market, after Europe's biggest payments company said finance chief Bernardo Mingrone was
Shares in Italy's Nexi fall as longtime CEO steps down
Nexi CEO Transition and Market Impact
By Valentina Za and Elvira Pollina
Market Reaction to CEO Departure
MILAN, March 26 (Reuters) - Shares in Italy's Nexi fell on Thursday, underperforming a weak Milan market, after Europe's biggest payments company said its long-serving CEO would step down.
Nexi said late on Wednesday finance chief Bernardo Mingrone would replace Paolo Bertoluzzo, who led the company for a decade, overseeing its 2019 listing, its acquisition-fuelled expansion and its struggle with a plummeting share price as the wider sector came under pressure.
Background on CEO Handover
Sources familiar with the matter said Bertoluzzo, who submitted his resignation a few days ago, brought forward a planned handover to Mingrone after a March 5 capital markets day share slump, having lost board support.
A Milan-based trader said the change in CEO was not negative in itself, as a new leader could help the embattled group turn a page, but in the short term it added uncertainty.
Nexi shares were down 2% at just under 3 euros by 1255 GMT, against a 1.3% drop in Italy's blue-chip index.
Nexi listed at 9 euros a share and hit a record high above 19 euros in 2021.
Industry Context and Company Challenges
Challenging Times for Payments Firms
'CHALLENGING TIMES'
Payments firms soared after the pandemic-driven boom in e-commerce, but their shares later sank as rapid technological change fuelled concerns that new entrants could outpace incumbents such as Nexi.
Bertoluzzo's exit came after a sharp sell‑off in Nexi shares to an all‑time low after he unveiled a new three‑year strategy this month, failing to address investor unease.
Leadership Changes and Future Outlook
Mingrone also acted as deputy general manager and CEO of the Nexi Payments unit.
"Mingrone is taking on the role of CEO in challenging times, as Nexi faces revenue headwinds from contract losses and increased competitive threats in core markets, putting, in our view, pressure on future re-acceleration and profitability," Jefferies said in an analyst note.
"That said, Mingrone demonstrated strong execution in restructuring Nexi's balance sheet post-IPO and throughout the European consolidation phase."
He is due to be replaced as CFO by Piergiorgio Pedron, whose appointment, effective April 1, was announced in January.
(Reporting by Valentina Za and Elvira Pollina: Additional reporting by Giancarlo Navach and Alvise Armellini, Editing by Mark Potter, Keith Weir and Susan Fenton)
