Who has Monti dei Paschi di Siena's board chosen as their new CEO candidate?

The board has selected Fabrizio Palermo as their candidate for chief executive.

What action did the MPS board take regarding Luigi Lovaglio?

The board revoked Luigi Lovaglio's powers as CEO and suspended him from his duties as general manager.

Why did MPS revoke CEO Luigi Lovaglio's powers?

The decision followed necessary assessments, including input from external advisors.

Is Luigi Lovaglio still serving as MPS general manager?

No, he was suspended with immediate effect from his duties as general manager.

When did MPS announce the change in leadership?

The announcement was made on March 25.

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Finance

Italy's Mps Board Revokes CEO Lovaglio's Powers

Published by Global Banking & Finance Review®

Posted on March 25, 2026

2 min read

Last updated: March 25, 2026

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Italy's MPS board revokes CEO Lovaglio's powers - Finance news and analysis from Global Banking & Finance Review

MPS Boardroom Turmoil and Leadership Changes

MILAN, March 25 (Reuters) - Monte dei Paschi di Siena (MPS) said directors had decided to strip Chief Executive Luigi Lovaglio of his powers, after he bid for a new term at the helm challenging a decision by the board to rule him out.

Background of the Dispute

Lovaglio and the MPS board have fallen out over the CEO's strategy for recently acquired peer Mediobanca, with a major MPS shareholder also opposed to Lovaglio's push to fully merge the two banks.

Shareholder Involvement and Board Nominations

On Saturday, small MPS investor PLT Holding expressed support for Lovaglio's plan and put him forward for a new mandate, filing a slate of board nominees that challenges the list submitted by the bank's outgoing board.

Shareholders vote on the two slates on April 15, when they elect a new CEO.

Immediate Actions by the Board

MPS said in a statement that given PLT's move, the board had taken away Lovaglio's executive powers and stripped him of the role of general manager.

Temporary Leadership Arrangements

The board put Deputy General Manager Maurizio Bai in charge of the ordinary running of the bank until April 15.

Lovaglio's Position as Director

The board had pressured Lovaglio to resign, three people with knowledge of the matter said, but he stayed on and will now remain as a director until the general meeting.

Future Leadership Prospects

On Tuesday, MPS said its board had decided to propose Fabrizio Palermo, the CEO of Roman utility ACEA, as its sole CEO candidate for the bank, dropping a previous decision to have three possible candidates.

Lovaglio's Tenure and Bank Restructuring

Achievements and Reprivatisation

Lovaglio has led MPS since 2022, overseeing a restructuring of the bank which Italy's government had saved from collapse in 2017. MPS was successfully reprivatised during 2023-2024.

(Reporting by Valentina Za in Milan and Mrinmay Dey in Mexico City; Editing by Shilpi Majumdar and Alvise Armellini)