MPS proposes CEO change to strengthen governance and internal cooperation

15:15

Monte dei Paschi di Siena (MPS), one of Italy’s oldest financial institutions, has announced plans to propose a change in its leadership as part of efforts to improve internal coordination and governance.

The decision comes ahead of a key shareholders’ meeting scheduled for mid-April, where a new board will be appointed. The bank’s directors have recommended replacing current chief executive Luigi Lovaglio, who has led the institution since 2022, with Fabrizio Palermo, currently head of the utility company Acea.

According to the board, the proposal follows a comprehensive internal review that highlighted the need for leadership capable of addressing upcoming market challenges while fostering stronger collaboration within the organization. The bank emphasized that the next phase of its development requires both strategic vision and a more inclusive approach to decision-making.

MPS stated that the proposed leadership changes aim to strike a balance between continuity and renewal. The reappointment of chairman Nicola Maione is intended to ensure stability, while introducing new leadership is expected to enhance the overall effectiveness of the bank’s governance.

The move reflects broader transformations within the European banking sector, where institutions are adapting to evolving financial conditions, regulatory pressures, and the need for stronger internal structures. For MPS, the proposed transition marks another step in its ongoing efforts to strengthen its position and restore long-term confidence among investors.