Monte dei Paschi Siena CEO Stripped of Powers Amid Shareholder Dispute and Investigation
Luigi Lovaglio has been suspended as general manager of Monte dei Paschi di Siena (MPS), with immediate effect, though he will remain on the board of directors as an advisor without CEO powers until the shareholders’ meeting on April 15. This decision follows a three-day meeting of the bank’s board, prompted by Lovaglio’s inclusion as a candidate for CEO on a list presented by PLT Holding S.r.l. and PLT SpA.
The board stated it reserves the right to assess the documentation of the list nominating Lovaglio, ensuring compliance with corporate and regulatory laws, and will discuss the matter with relevant authorities. Three lists have been filed for the new board: one from the outgoing board (which excluded Lovaglio), one from PLT re-nominating the banker, and one from Assogestioni, a minority shareholder. There are also three lists for the renewal of the board of auditors, including one from PLT and one from member Caltagirone nominating tax expert and current mayor of MPS, Giacomo Granata, alongside Rome Technopole general director, Sabrina Saccomandi.
Investigation into Alleged Market Manipulation
The board’s decision references concerns regarding regulatory compliance of the list supporting Lovaglio, potentially linked to an ongoing investigation by the Milan prosecutor’s office. The investigation centers on alleged secret agreements between Francesco Milleri (Del Vecchio group) and Francesco Gaetano Caltagirone to gain control of Mediobanca-Generali. Prosecutors allege Lovaglio provided “fundamental material support” to this effort, though external to the core agreement.
According to the bank’s 2025 financial report, the investigation focuses on potential crimes of market manipulation and obstruction of supervisory authorities. Specifically, the accusations involve concealing shareholder agreements regarding Mediobanca from Consob, the ECB, and Ivass, potentially altering share prices and hindering regulatory oversight. The report clarifies that while the investigation includes accusations against three suspects, only Lovaglio is alleged to have concerted to facilitate the acquisition of Mediobanca. MPS itself is not under investigation.
Upcoming Shareholder Vote and Proxy Advisor Recommendations
The renewal of the board of directors is scheduled for April 15. Voting recommendations from proxy advisors ISS and Glass Lewis are expected next week, which will likely influence shareholder decisions, particularly among institutional investors who hold over 60% of MPS’s capital. The voting intentions of Delfin (17.5%) and the Ministry of Economy (4.9%) remain uncertain.
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