Norges Bank Supports Lovaglio for Monte dei Paschi CEO

Norway's sovereign wealth fund manager, Norges Bank Investment Management (NBIM), has announced its support for the reappointment of Luigi Lovaglio as the chief executive of BANCA MONTE DEI PASCHI SIENA. At the end of 2025, NBIM held a 2.87% stake in the Italian lender with a market value of approximately $935 million, positioning the fund as the institution's sixth-largest shareholder. This endorsement comes despite the bank's board proposing Fabrizio Palermo—the current head of ACEA SPA—as the new CEO. Palermo also serves on the board of GENERALI, having been appointed by a key shareholder in both the insurer and the bank. The leadership conflict in Italy follows the board's decision to vote out Lovaglio after he gained support for a strategic plan to merge with MEDIOBANCA SPA. The plan, which involves acquiring the remaining 14% of the lender to take it private, still requires final approval from shareholders. NBIM has signaled that it will oppose the board's slate of nominees, including Palermo and Chairman Nicola Maione, if the selection process moves to a second vote on individual candidates. While the fund typically supports minority-nominated candidates in bundled-voting systems, it emphasized the importance of board accountability to its investors. > Shareholders should have the right to seek changes to the board when it does not act in their best interest.