Italy's Monte Dei Paschi Chooses CEO to Succeed Luigi Lovaglio

Dow Jones03-25 17:02

By Elena Vardon

Banca Monte dei Paschi di Siena intends to propose Fabrizio Palermo, the boss of Italian water operator Acea, to succeed current chief executive officer Luigi Lovaglio.

The board of the Italian lender decided not to re-elect Lovaglio earlier this month, laying the groundwork for the exit of the executive who steered the world's oldest bank through its return to profitability and its hostile takeover of larger rival Mediobanca.

Since then, a minority shareholder proposed to keep the CEO on for another term in order to ensure continuity amid the integration of Mediobanca. Monte dei Paschi said in response late Tuesday that it identified Palermo as the sole candidate for the CEO position after an in-depth assessment.

Shareholders will be asked to vote on the list of candidates they prefer and name the directors that will sit on the board for the 2026-28 term at the group's annual general meeting on April 15. The newly elected board will then vote to appoint the next CEO.

Monte dei Paschi previously short-listed Palermo, former Intesa Sanpaolo and Poste Italiane chief Corrado Passera and former UniCredit executive and Banca Mediolanum board member Carlo Vivaldi as CEO candidates.

"Palermo is a manager held in high regard by the market and by both Italian and international institutional investors, with a positive track record as CEO of Acea and in his previous roles at CDP and Fincantieri," Equita said in a research note.

The business plan that Lovaglio recently outlined for the combined group, which includes the delisting of Mediobanca and a set of financial targets through 2030, got a lukewarm reception from investors. The executive is being investigated by Italian prosecutors in a case related to allegations of supervisory obstruction and market manipulation. Lovaglio has denied wrongdoing.

Monte dei Paschi's shares traded 2% higher on Wednesday morning.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

March 25, 2026 05:02 ET (09:02 GMT)

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Italy's Monte Dei Paschi Chooses CEO to Succeed Luigi Lovaglio

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