Banca Monte dei Paschi di Siena SpA has installed Luigi Lovaglio as chief executive officer, restoring the former head after a mid‑year clash over strategy. The board granted him full authority under the existing governance framework, while Cesare Bisoni stepped in as chairman. Lovaglio’s return signals a shift in the bank’s direction for the future.

The move follows a dramatic showdown in which the old board ousted Lovaglio earlier this month when he refused to step down. Shareholders, however, swung in his favour in a surprise vote last week, rejecting the board’s CEO nominee and paving the way for his return amid mounting pressure to steer the bank after the $17 billion takeover of Mediobanca deal.

Disagreements centred on whether Mediobanca should stay listed and how to handle its stake in Assicurazioni Generali. The outgoing board argued fresh leadership was needed to manage integration and growth post‑purchase, a view backed by construction magnate Francesco Gaetano Caltagirone. Unexpectedly, Delfin— the largest shareholder and estate of Leonardo Del Vecchio—also supported Lovaglio for the future.

Lovaglio’s reinstatement could stabilize Monte Paschi’s governance, reassuring investors and easing integration risks with Mediobanca. With Delfin’s backing, the bank may pursue a more conservative strategy, potentially keeping Mediobanca listed and preserving its Generali interest. The decision underscores how shareholder alignment can override board disputes, directly affecting the bank’s market positioning and regulatory trajectory today.