Italy’s market regulator, Consob, has determined that none of the three slates of nominees submitted for the board of Monte dei Paschi di Siena (MPS) are illegitimate. This decision follows a complaint filed by MPS’s board regarding a slate submitted by small investor PLT Holding. Monte dei Paschi di Siena is an Italian bank. It is considered the oldest or one of the oldest banks in the world.
The complaint challenged PLT Holding’s slate, which aims to secure another mandate for current CEO Luigi Lovaglio. According to a source familiar with the matter, Consob consulted closely with the European Central Bank before dismissing the complaint. The regulator’s definitive stance aims to eliminate any ambiguity, especially given that governance advisors are preparing voting recommendations for shareholders.
Consob’s intervention comes ahead of the April 15 shareholder vote to elect a new board and CEO. PLT Holding has also challenged the slate filed by the MPS board, which seeks to replace Lovaglio with Fabrizio Palermo, the current CEO of utility Acea. A third slate of nominees has been put forward by fund manager association Assogestioni.
The regulator’s move underscores the importance of providing investors with clarity as they prepare to make crucial decisions regarding the future leadership of the bank.
