Finance
Monte dei Paschi removes potential stumbling block for CEO reappointment
Published by Global Banking and Finance Review
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Quick Summary
Monte dei Paschi eases CEO Lovaglio's reappointment by allowing all directors to partake in board renewal, amid Mediobanca acquisition dynamics.
Monte dei Paschi Eases Path for CEO Lovaglio's Reappointment
Monte dei Paschi's Board and CEO Developments
By Valentina Za and Giuseppe Fonte
Judicial Probe and Its Implications
MILAN, Jan 28 (Reuters) - Monte dei Paschi di Siena (MPS) said on Wednesday it had approved rules allowing all of its directors to take part in the process of drawing up a list of candidates for a renewal of the bank’s board.
Mediobanca Acquisition Overview
This removes a potential obstacle to the reappointment of Chief Executive Luigi Lovaglio, whose mandate expires in April.
Shareholder Dynamics and Support
Lovaglio has been at risk of being excluded from the process to select new board nominees because of a judicial probe into the MPS's takeover of larger rival Mediobanca, two people with knowledge of the matter told Reuters, amid divisions within the board over Mediobanca's future.
Lovaglio led MPS during last year's Mediobanca deal and is seeking another term to oversee the integration of the two banks.
MPS gained control of 86% of Mediobanca via a 16 billion euro ($19 billion) share-and-cash offer. The take-up of the deal exceeded expectations and raises the prospect of a full acquisition to delist Mediobanca, in line with the bid's prospectus.
MPS, which was rescued by the Italian government in 2017, was returned to private hands in 2023-2024. This brought on board as shareholders the Del Vecchio family's Delfin investment vehicle and construction magnate Francesco Gaetano Caltagirone.
Delfin and Caltagirone later boosted their holdings and provided support for the Mediobanca takeover - the largest deal so far in a consolidation wave sweeping Italian banking.
Mediobanca's future strategy has become a flashpoint for the MPS board, where five members were replaced after Delfin and Caltagirone became shareholders, with the construction billionaire gaining two seats.
Caltagirone has so far declined to align with Delfin and the Italian Treasury, which holds 4.9% of MPS, in supporting a new term for Lovaglio.
MPS must submit to European Central Bank supervisors a strategy for the combined group by early March.
($1 = 0.8382 euros)
(Reporting by Valentina Za and Giuseppe Fonte. Editing by Jane Merriman)
Key Takeaways
- •Monte dei Paschi approved rules for board renewal.
- •CEO Lovaglio's reappointment is now more likely.
- •Judicial probe into Mediobanca acquisition posed risks.
- •Shareholders Delfin and Caltagirone support the takeover.
- •MPS must submit a strategy to ECB by March.
Frequently Asked Questions about Monte dei Paschi removes potential stumbling block for CEO reappointment
1What is a judicial probe?
A judicial probe is an investigation conducted by legal authorities to examine potential wrongdoing or violations of laws, often involving financial transactions or corporate governance.
2What is corporate governance?
Corporate governance refers to the systems, principles, and processes by which companies are directed and controlled, ensuring accountability and transparency in their operations.
3What is an acquisition in finance?
An acquisition is a financial transaction where one company purchases a controlling interest in another company, often to expand its market presence or gain new capabilities.
4What is a board of directors?
A board of directors is a group of individuals elected to represent shareholders and oversee the management of a company, making key decisions and ensuring accountability.
5What is a CEO's mandate?
A CEO's mandate refers to the authority and responsibilities granted to a Chief Executive Officer, including strategic decision-making and overall management of the organization.
