Overview
- Monte dei Paschi’s board, which acted Tuesday, terminated Luigi Lovaglio’s employment for “just cause” after pulling his CEO powers and suspending him on March 25.
- The bank says the move followed his decision to join a rival investor list led by PLT Holding as its CEO pick, arguing he failed to inform the board in advance.
- Shareholders vote on April 15 to choose a new board, with the outgoing board’s slate backing Nicola Maione as chair and Fabrizio Palermo as CEO against PLT’s ticket led by Cesare Bisoni and Lovaglio.
- Turnout is expected to be high after Delfin deposited its 17.5% stake and is reported to lean toward abstention, while ISS and Glass Lewis recommended the board slate and several US pension funds disclosed support for it.
- The clash plays out as a Milan prosecutor investigates Lovaglio’s role in the Mediobanca deal for alleged market abuse and obstruction, and PLT’s Pierluigi Tortora called the firing unfounded and abnormal.