CEO outLuigi Lovaglio's name is not there in the list that will be presented today to the board of directors of MPS The bank's Nominations Committee made this surprising decision following a lengthy meeting, and will have to decide on its composition by qualified majority.
The news came late yesterday evening and this morning the stock market reaction It was disruptive. From the very beginning, MPS shares slipped to the bottom of the FTSE MIB, and around 11 a.m. they lost 3,5% of their value to €7,507, compared to a FTSE MIB up 0,8%. Its subsidiary Mediobanca also fell sharply, down 3% to €16,58 per share.
MPS: Lovaglio removed from the list
The current CEO of Monte dei Paschi, the man who turned it around and brought it back to profit after the government bailout, remains so excluded from the names proposed to the board of directors in view of the renewal of the board which will have to be voted on by the assembly next April.
The list that will arrive on the councilors' table currently includes 26 names which will be reduced to 20. It will have to be approved with at least 10 votes out of 14 and should also indicate Lovaglio's possible successor at the helm of Monte dei Paschi. Among the possible candidates are the founder of illimity and former minister, Corrado Passera, the head of Acea, Fabrizio Palermo and the former head of Eastern Europe at Unicredit, Carlo Vivaldi. The match should be between the last two.
The indication of the nomination committee was decisive the investigation opened by the Milan prosecutor's office on Lovaglio, accused of collusion, and on his partners Francesco Gaetano Caltagirone and Francesco Milleri (Delfin), who according to investigators would have carried it out as part of the acquisition of Mediobanca.
The decision was influenced by the position of Caltagirone, which holds 11% of the Sienese bank's capital and did not appreciate the CEO's acceleration in the integration of Piazzetta Cuccia into MPS.
New board of directors today
It is scheduled for this afternoon the board of directors of MPS called to decide on the short list of the board of directors to be presented to the April meeting for the renewal of the positions with the new mechanism provided for by the Capital Law. The board of directors will have to implement the recommendation of the nomination committee, which has been working for days to definitively resolve the issue of Lovaglio's presence on the short list. Unless there is a further postponement, the board will decide whether or not to implement the nomination committee's opinion. The qualified majority vote makes the final outcome uncertain.
