Finance
Italy to keep out of MPS board renewal process as CEO fights for reappointment, sources say
Published by Global Banking & Finance Review®
Posted on February 24, 2026
3 min readLast updated: February 24, 2026
Tags:corporate governance
Quick Summary
Italy will not join MPS’s board slate despite a 4.9% stake, while CEO Luigi Lovaglio seeks reappointment. A shortlist is due by March 5 pending ECB by-law approval, with Passera, Vivaldi and Palermo among candidates.
Italy to Sit Out MPS Board Slate as CEO Lovaglio Seeks New Term
MPS Board Renewal and CEO Prospects
ROME/MILAN, Feb 24 (Reuters) - Italy will not take part in selecting a new board at Monte dei Paschi (MPS) despite its 4.9% stake in the bailed‑out lender where CEO Luigi Lovaglio is fighting for reappointment, three sources close to the matter said.
Italy returned MPS to private hands in 2023-2024 after rescuing it in 2017.
Treasury abstains from board representation
Government Stance and Board Slate
The Treasury won't seek board representation or back any of the other slates of candidates, respecting re-privatisation commitments taken with the European Union, the sources said, asking not to be named due to the sensitivity of the matter.
Treasury previously favoured Lovaglio
Reuters reported in January that the Treasury was in favour of reappointing Lovaglio for another term.
Candidate Shortlist and Timeline
VIABLE EXECUTIVE CANDIDATES
The bank's board on Friday selected an initial list of nominees for its renewal in April. The slate included Lovaglio and current Chairman Nicola Maione, but also other candidates with executive profiles.
Takeover under Lovaglio
Mediobanca Integration and Strategy
Lovaglio, 70, has overseen the restructuring of MPS and its 16-billion-euro ($19 billion) share-and-cash takeover last year of bigger rival Mediobanca.
Endorsements and opposition
Shareholder Dynamics: Delfin vs Caltagirone
He has been endorsed by MPS' main shareholder Delfin but not by the bank's second-biggest investor, the construction magnate Francesco Gaetano Caltagirone.
Viable executive candidates
The candidates who could potentially aspire to a bigger role than simple board members are former UniCredit executive Carlo Vivaldi, veteran banker Corrado Passera and Fabrizio Palermo, CEO at utility ACEA and a board member at insurer Generali, sources told Reuters last week.
Generali investor position
By taking over Mediobanca, MPS has become the main investor in Generali alongside Delfin and Caltagirone.
Shortlist to 20 names
Vivaldi, Passera and Palermo, together with Lovaglio and Maione, are expected to be part of a shortlist of 20 names, down from the current 30, one of the three sources said on Tuesday.
Maione likely to return
Maione is on course for reappointment, this source added.
Passera open to chairmanship
Passera, 71, is not interested in a CEO role and would consider the chairmanship if Maione is not confirmed, a fourth source close to the matter said.
Governance and Regulatory Steps
March 5 slate deadline
MPS's board faces a March 5 deadline to finalise its slate of nominees. The bank is still awaiting European Central Bank approval for the amended by-laws that would allow its outgoing board to indicate new directors.
New multi-year strategy
In the wake of the Mediobanca takeover Lovaglio is due to present on Friday a new multi-year strategy for the combined entity, having secured board approval last week to acquire the remaining 14% of the merchant bank and take it private.
Treasury representative resigns amid probe
Italy's Treasury lost one of its representative on the MPS board, a senior official at the ministry, who stepped down from the bank's board due to a probe over alleged insider trading.
FX rate reference
($1 = 0.8493 euros)
(Reporting by Valentina Za in Milan and Giuseppe Fonte in Rome, editing by Gavin Jones)
Key Takeaways
- •Italy will not participate in MPS’s board slate or back rival lists despite a 4.9% stake, honoring EU re-privatisation commitments.
- •CEO Luigi Lovaglio is seeking another term; he is backed by Delfin but opposed by investor Francesco Gaetano Caltagirone.
- •The board’s initial list includes Lovaglio, Chair Nicola Maione, and executive profiles Corrado Passera, Carlo Vivaldi and Fabrizio Palermo.
- •A shortlist is due by March 5, with the final vote expected at April’s shareholder meeting; ECB approval of by-law changes is pending.
- •A Treasury-linked director resigned amid an insider-trading probe, adding governance pressure around the renewal process.
Frequently Asked Questions about Italy to keep out of MPS board renewal process as CEO fights for reappointment, sources say
1What is the main topic?
Italy will not take part in Monte dei Paschi’s board renewal despite a 4.9% stake, as CEO Luigi Lovaglio seeks another term and key investors line up their preferred candidates.
2Why is Italy abstaining from the board selection?
Rome is honoring re-privatisation commitments agreed with the EU, choosing not to seek board seats or back other slates even though it retains a minority stake.
3Who are the notable candidates for the new MPS board?
The list features CEO Luigi Lovaglio and Chair Nicola Maione, plus executive profiles Corrado Passera, Carlo Vivaldi and Fabrizio Palermo, ahead of a March 5 shortlist.
