In a dramatic reversal of expectations, Luigi Lovaglio has returned to the helm of Banca Monte dei Paschi di Siena (MPS) as Chief Executive Officer. The decision came following a high-stakes shareholders’ meeting in Siena, where a surprise shift in voting blocs overturned the projected victory of the outgoing board’s slate.
The outcome was decided by the victory of a list presented by Plt Holding, which secured 49.95% of the votes, defeating the board’s preferred list which garnered 38.79%. This result marks a significant turnaround for Lovaglio, who had previously been excluded from the board’s own list and faced internal tensions, including the revocation of his delegations and General Manager role for “just cause” prior to the meeting.
The shift in power was driven by the decisive support of Delfin—the holding company of the Del Vecchio family and MPS’s largest shareholder with a 17.5% stake—and Banco BPM, which holds a 3.7% share. Together with support from major funds like BlackRock and Norway’s sovereign wealth fund, these entities pivoted away from the board’s continuity plan to back the restructuring expertise of the former CEO.
For the global financial community, the return of Luigi Lovaglio to the leadership of Italy’s oldest bank signals a preference for the management style that oversaw the institution’s recovery following years of state bailouts. The move effectively blocks the influence of other major stakeholders, such as entrepreneur Francesco Gaetano Caltagirone, whose supported list failed to capture the necessary majority.
The Mechanics of the ‘Ribaltone’: How the Vote Shifted
The atmosphere at the shareholders’ meeting was characterized by a sharp divide between the “continuity” proposed by the outgoing board and the “change of course” presented by Plt Holding. Up until the start of the assembly, many analysts and observers considered the board’s list—which proposed Fabrizio Palermo as CEO—to be the favorite.
However, the final tally revealed a different reality. The Plt Holding list, led by the Tortora family, managed to consolidate nearly half of the voting capital. The decisive factor was the alignment of Delfin and Banco BPM. Even as the board of Banco BPM had not formally expressed a position in advance, the support of President Massimo Tononi and CEO Giuseppe Castagna proved critical. Meanwhile, the Benetton family’s investment vehicle, Edizione, chose to abstain from the vote holding a 1.4% stake.
The board’s list, which began with the support of Caltagirone’s 13.5% stake, ultimately failed to reach the threshold required to maintain control, finishing with 38.79% of the vote. A third minority list, presented by institutional investors through Assogestioni, received 6.94% of the consensus.
Composition of the Modern Board of Directors
The new Board of Directors consists of 15 members, reflecting a compromise between the winning Plt list and the defeated board list. The distribution of power is as follows:
- Plt Holding (8 members): Cesare Bisoni (President), Luigi Lovaglio, Flavia Mazzarella, Livia Amidani Aliberti, Massimo Di Carlo, Patrizia Albano, Carlo Corradini, and Paola Leoni Borali.
- Outgoing Board List (6 members): Nicola Maione, Fabrizio Palermo, Corrado Passera, Carlo Vivaldi, Paolo Boccardelli, and Antonella Centra.
- Assogestioni (1 member): Paola De Martini.
Cesare Bisoni will assume the presidency of the bank, replacing the outgoing president Nicola Maione. This new structure represents a hybrid governance model, though the strategic direction is now firmly under the influence of the Plt Holding group and Lovaglio.
Lovaglio’s Legacy and the Path Forward
Luigi Lovaglio is widely recognized as the architect of the financial recovery of Monte dei Paschi di Siena. His previous tenure was defined by the complex task of cleaning up the bank’s balance sheet after a series of massive state interventions. His return is viewed by many shareholders as a return to stability and a proven track record of restructuring.
Upon the announcement of the results, Lovaglio expressed his gratitude toward engineer Pierluigi Tortora and his family for their support. He stated that he “cannot wait to start again,” signaling a desire to build upon the recovery efforts he initiated during his first term. The market reacted positively to the news, with the bank’s shares rising following the assembly’s conclusion as the Borsa rewarded the stock.
The internal conflict leading up to this vote was intense. Because Lovaglio had accepted a candidacy on the Plt Holding list, the outgoing board had reacted by stripping him of his duties as General Manager, citing “just cause.” This created a period of high tension that effectively turned the shareholders’ meeting into a referendum on the bank’s management strategy.
The Role of the Italian State and Political Influence
One of the most notable aspects of the current MPS landscape is the diminishing role of the Italian government. The Meloni administration has successfully reduced the public stake in the bank, which now stands at approximately 4.8-4.9%. The government was absent from the assembly, signaling a transition toward full private-sector governance.
Prime Minister Giorgia Meloni has repeatedly stated that the government’s role in the bank has ended and that the executive branch does not intend to influence future appointments or strategic decisions. This vacuum of political interference allowed the private shareholders—specifically the clash between the interests of the Tortora family, Delfin, and Caltagirone—to dictate the bank’s leadership without state intervention.
Key Takeaways from the MPS Leadership Change
- Management Shift: Luigi Lovaglio returns as CEO, ending a period of internal conflict with the previous board.
- Shareholder Power: Delfin (17.5%) and Banco BPM (3.7%) were the kingmakers, pivoting to support the Plt Holding list.
- Governance: A new 15-member board has been established, with Cesare Bisoni as President.
- State Exit: The Italian government, now holding less than 5% of the capital, has officially stepped back from direct influence.
- Market Sentiment: Investors reacted positively to the return of a leader associated with the bank’s successful restructuring.
The next critical checkpoint for Monte dei Paschi di Siena will be the implementation of the new board’s strategic plan and the first official reports under Lovaglio’s second term as CEO. Shareholders and analysts will be watching closely to see if the “confidence and determination” cited by Lovaglio can translate into further growth and stability for the Sienese institution.
We invite our readers to share their thoughts on this leadership change in the comments below. How do you see the return of Lovaglio impacting the Italian banking sector?