Published by Global Banking & Finance Review®
Posted on March 23, 2026
2 min readLast updated: March 23, 2026
Add as preferred source on GoogleMonte dei Paschi’s board is moving to challenge CEO Luigi Lovaglio’s position after a shareholder-backed bid to renew his mandate, opposing the board’s preferred alternatives.
MILAN, March 23 (Reuters) - Directors at Monte dei Paschi di Siena are set to challenge the position of CEO Luigi Lovaglio on Monday after he made a bid to secure another term at the helm despite the board's opposition, three people close to the matter said.
Lovaglio, 70, on Saturday was put forward for a new mandate as CEO by MPS shareholder PLT Holding, after the bank's board ruled him out and proposed three alternative candidates.
MPS shareholders vote on a new CEO and board on April 15.
The board will examine PLT's slate of nominees and discuss Lovaglio's role after he challenged his own exclusion at a previously arranged meeting on Monday, the people said.
The board is expected to seek the CEO's resignation, two of the people added.
If Lovaglio refuses to leave his position, the three sources said the executive could be stripped of his delegated powers, with two people adding a dismissal was potentially also a possibility but at present a more remote one.
The governance crisis at Monte dei Paschi comes after the bailed-out bank last year shocked Italy's financial world by bidding for bigger rival Mediobanca and acquiring 86% of it.
Lovaglio has lost the board's support, and clashed with a major investor, as he sped forward plans to buy the remaining 14% of Mediobanca and take it private.
(Reporting by Valentina Za; Editing by Kirsten Donovan)
The board opposes Lovaglio's bid for another term as CEO, despite his nomination by shareholder PLT Holding, and has proposed alternative candidates.
Shareholders will vote on a new CEO and board at Monte dei Paschi on April 15.
If Lovaglio refuses to resign, the board may strip him of delegated powers and possibly consider dismissal, though the latter is currently less likely.
The crisis followed Lovaglio's aggressive push to acquire the remaining shares of Mediobanca and take it private, sparking opposition from the board and investors.
PLT Holding, a shareholder in Monte dei Paschi, put forward Luigi Lovaglio for another CEO term.
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