MPS Board Nominates Palermo CEO, Ousting Lovaglio

Palermo, currently head of the Rome-based utility firm ACEA and previously head of state investment agency CDP, was selected as the top contender from a shortlist of three candidates. This decision follows intensified leadership scrutiny and a boardroom skirmish over strategic decisions concerning MPS's acquisition of Mediobanca last year.

Current CEO Lovaglio, who led MPS's restructuring after its 2017 state bailout and the Mediobanca acquisition, was excluded from the initial shortlist, though he remains a nominee for the April 15 shareholder vote. Further discussions revealed plans to strip Lovaglio's executive powers and appoint Deputy General Manager Maurizio Bai in his place.

Notably, both ACEA and MPS share a significant investor, Francesco Gaetano Caltagirone, whose son Alessandro holds board positions in both entities, highlighting potential influence in the leadership transition. This leadership change aims to guide the state-backed lender through its turbulent phase and ongoing shareholder tensions.