MPS Names Fabrizio Palermo as New CEO Candidate, Replacing Luigi Lovaglio

Monte dei Paschi di Siena (MPS) has selected Fabrizio Palermo as its preferred candidate for Chief Executive Officer, initiating a leadership transition that will see him potentially replace Luigi Lovaglio. The decision, made by the bank’s board of directors on Wednesday, March 25, 2026, will be put to a shareholder vote on April 15.

Leadership Shift at Italy’s Third-Largest Bank

The move comes after a period of internal debate regarding Lovaglio’s position, with the board considering removing his executive powers as reported by MSN. Palermo, currently the CEO of Acea, was chosen as the sole candidate following a structured assessment process, evaluated on experience, managerial skills, and strategic alignment with the bank’s needs according to Devdiscourse.

Fabrizio Palermo’s Background and Experience

Fabrizio Palermo brings a wealth of experience to the role. He holds a degree in Economics and Commerce from “La Sapienza” University of Rome and began his career in Investment Banking at Morgan Stanley in London. He later served as a strategic consultant for McKinsey & Company as detailed in Forbes Italia. His previous leadership positions include CFO and Vice Director General at Fincantieri, CFO at Cassa Depositi e Prestiti (CDP), and CEO and Director General of CDP from 2018 to 2021.

Shareholder Dynamics and Potential Influences

The leadership contest occurs amidst shareholder tensions and strategic changes within MPS. Both Acea and MPS have connections to Italian businessman Francesco Gaetano Caltagirone, suggesting potential influences in the selection process Devdiscourse reports. Lovaglio, who has led the bank since 2022, also sought support from minority shareholders and reaffirmed the validity of his industrial plan, including integration with Mediobanca according to Forbes Italia.

Market Reaction

Following the announcement of Palermo as the candidate, shares of MPS and Mediobanca experienced a rise of approximately 2% on the Milan Stock Exchange as reported by Money.it.

Looking Ahead

The final decision rests with shareholders at the April 15 meeting. Palermo’s appointment, if confirmed, will be crucial in navigating MPS through its ongoing transformation and strategic evolution. The board emphasized that Palermo is the most suitable candidate to support the bank during this critical phase Forbes Italia.