MPS CEO Power Struggle: Luigi Lovaglio vs. the Board

Monte dei Paschi di Siena (MPS) has stripped CEO Luigi Lovaglio of his executive powers following a bid for another term, opposed by the board. The conflict arises from differing strategies over the merger with Mediobanca. Shareholder PLT Holding supports Lovaglio, with a final decision due April 15.

Monte dei Paschi di Siena (MPS) has witnessed a significant internal conflict, stripping CEO Luigi Lovaglio of his powers after he sought reappointment against the board's wishes.

The disagreement stems from divergent strategies concerning the merger with newly acquired Mediobanca, with major shareholders opposing Lovaglio's aggressive integration approach. Backing him, however, is investor PLT Holding, who has promoted Lovaglio for another term, challenging the board's choices for leadership.

With the decisive shareholder vote set for April 15, deputy general manager Maurizio Bai has been placed in charge of daily operations. The board has since nominated Fabrizio Palermo, current ACEA CEO, as the main candidate for MPS CEO.

(With inputs from agencies.)