Monte dei Paschi di Siena: Lovaglio wins the board election, Ticino among the affected regions

Context

TL;DR

• Lovaglio wins MPS board vote with Delfin and Banco BPM support.
• Turnout at 64.1%, higher than typical bank shareholder meetings.
• New board has 15 members, Lovaglio's slate holds majority.
• MPS stability impacts 7,000 cross-border workers in Ticino.

Key facts

• Vincitore: Luigi Lovaglio
• Supporto chiave: Delfin Investments (17.5%) e Banco Bpm (3.7%)
• Voti: Lovaglio: 50.05%, Board uscente: 38.79%
• Affluenza: 64.1%
• Nuovo consiglio: 15 membri, 8 da Lovaglio, 6 da board uscente, 1 da Assogestioni
• Impatto Ticino: 7,000 lavoratori frontalieri, stabilità operativa cruciale
• Priorità: Posizione su Generali, innovazione e creazione di valore
• Prossimi passi: Riunione del nuovo consiglio prevista il giorno dopo il voto

An unexpected political shift has reshaped the balance of power at the top of Banca Monte dei Paschi di Siena. Within a matter of hours, the shareholders’ meeting confirmed the victory of the slate led by Luigi Lovaglio, backed by two key investors: Delfin Investments (17.5% of the capital) and Banco Bpm (3.7%). The outgoing board’s list, which had initially held a projected lead of over 30%, secured just 38.79% of the vote, while Assogestioni garnered 6.94%. Voter turnout stood at 64.1% of the capital, a figure that underscores the strategic importance of the vote.

Delfin’s support proved decisive, as the investment firm is Mps’s largest shareholder with a 17.5% stake. According to Adnkronos, the move toward Lovaglio had already been circulating among industry insiders the evening before. Banco Bpm, the bank’s third-largest shareholder with a 3.7% stake, also voted in favor of Lovaglio’s slate, tipping the scales in his favor. Without these two votes, the outgoing board’s list would have prevailed, but the margin narrowed to 49.95% versus the opposition’s 38.79%.

‘I wouldn’t have found the motivation if I had been driven by a desire for revenge. I have one great goal: to implement an innovative project that creates value.’

Lovaglio declared after the victory was announced. The banker stressed that his decision was guided by a sense of responsibility toward shareholders and the commitments made during the bank’s recovery process. ‘This trust gives me even more determination. I can’t wait to get back to work.’

The new board of directors

Mps’s new board will consist of 15 members. Eight directors come from Lovaglio’s slate: Cesare Bisoni, Luigi Lovaglio, Flavia Mazzarella, Livia Amidani Aliberti, Massimo Di Carlo, Patrizia Albano, Carlo Corradini, and Paola Leoni Borali. Six members are drawn from the outgoing board’s slate: Nicola Maione, Fabrizio Palermo, Corrado Passera, Carlo Vivaldi, Paolo Boccardelli, and Antonella Centra. Completing the board is Paola De Martini, representing Assogestioni. According to reports, the new board could convene as early as the day after the vote.

Strategic next steps

Among the priorities for Lovaglio and the new board is the position on Generali, described as a ‘nice to have.’ The banker reaffirmed the stance he has maintained in the past, including in meetings with international institutions like Morgan Stanley. ‘I can’t wait to get back to work and pick up where I left off,’ he added.

Reactions in Ticino

With Mps’s operations in Ticino employing around 7,000 cross-border workers, the news of the political shift has drawn attention from commuters. The Ticino branches of Mps, like those of other Italian banks in the canton, serve as key points of reference for Italian clients operating in Switzerland. The stability of the management and operational continuity are factors that directly impact the confidence of local savers and workers.

Turnout and implications

The 64.1% turnout represents a significant figure, particularly in a context where bank shareholder meetings often see lower participation rates. Lovaglio’s victory was made possible by an extraordinary mobilization of shareholders, who viewed the banker’s ability to lead Mps’s recovery after years of challenges in a positive light.

📊 Key takeaways:

• Delfin Investments (17.5%) and Banco Bpm (3.7%) were decisive in Lovaglio’s victory.
• Turnout reached 64.1%, well above typical levels for bank shareholder meetings.
• The new board will include 15 members, with Lovaglio’s slate holding a majority.
• Cross-border workers in Ticino are closely monitoring the bank’s stability and continuity.

⚠️ Impact on Ticino: Mps’s operations in the canton employ approximately 7,000 cross-border workers, making the bank’s stability a key concern for local clients and employees.

Operational details

The upheaval at Banca Monte dei Paschi di Siena (MPS) is not merely an internal bank issue, but has concrete repercussions for the 7,000 cross-border workers from Ticino who are employed within the group. The stability of the management and operational continuity are factors that directly impact the job security and career prospects of these workers, many of whom hold key roles in MPS’s Ticino branches and those of other Italian banks operating in the canton.

Before vs after: what changes for cross-border workers

Prior to the vote, uncertainty over the future of MPS’s board had generated concern among employees. Lovaglio’s victory, backed by strategic shareholders such as Delfin and Banco BPM, introduces an element of continuity that could reassure both workers and clients. Lovaglio has repeatedly emphasised his goal of implementing an innovative project to create value, a statement that could translate into investments in Ticino and greater attention to the needs of cross-border workers.

Possible scenarios

• Scenario 1: Stability and growth – If Lovaglio succeeds in implementing his relaunch plan, MPS’s Ticino branches could benefit from increased strategic focus, with potential investments in digitalisation and services for cross-border workers. This could open up new career opportunities for local employees.

• Scenario 2: Restructuring – If the relaunch requires cost-cutting or reorganisation, Ticino-based cross-border workers could be involved in retraining programmes or internal mobility pathways between Swiss and Italian branches. The proximity to the border and knowledge of the Ticino market could work in their favour.

• Scenario 3: Operational uncertainty – If the new board’s results are not immediate, cross-border workers may face a transition period, with possible staff reductions or role changes. However, the presence of shareholders such as Delfin and Banco BPM could mitigate this risk.

Impact on other Italian banks in Ticino

Lovaglio’s success could have a ripple effect on other Italian banks operating in Ticino, such as Intesa Sanpaolo, UniCredit and Banco BPM. If MPS strengthens its position, competitors may be prompted to rethink their market strategies in the canton, potentially affecting the services offered to cross-border workers.

The role of investment funds

A key factor in the outcome was the support of investment funds, which at least partially followed the guidance of proxy advisors. This suggests that institutional investors are carefully evaluating the ability of Italian banks to compete in an increasingly competitive market, also thanks to the presence of cross-border workers who represent a strategically important customer segment.

Next steps for cross-border workers

For Ticino-based workers, it is crucial to monitor official communications from their banks regarding any organisational changes. Proximity to the border and knowledge of the Ticino market could provide a competitive advantage in the event of reorganisation or internal mobility. Furthermore, the stability of MPS’s management could positively influence the confidence of Italian clients operating in Switzerland, potentially benefiting local employees.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

For cross-border workers in Ticino employed by Italian banks such as Mps, Bank of America, Intesa Sanpaolo, or UniCredit, Luigi Lovaglio’s appointment as CEO of Mps introduces an element of stability that could translate into concrete opportunities. However, it is crucial to closely monitor organizational developments and prepare for potential changes. Here’s what to do in practice.

Step 1: Monitor official communications

Italian banks operating in Ticino are required to promptly communicate any organizational changes to employees. Cross-border workers should:

• Check their company email at least twice a day for updates on meetings, transfers, or role changes.
• Attend any briefings organized by management, even remotely, to understand the implications of Mps’s new structure on their position.
• Verify the presence of internal announcements on digital platforms such as the intranet or dedicated company apps.

📊 Pro tip: Enable push notifications for critical communications to avoid missing important updates.

Step 2: Assess your position

In the event of reorganizations or internal mobility, cross-border workers should:

• Analyze their skills and assess whether they align with the bank’s new strategic priorities. For example, if Mps’s new board prioritizes digitalization and services for cross-border workers, skills in digital banking or knowledge of the Swiss market could be advantageous.
• Contact their HR manager to discuss potential upskilling paths or training programs, especially if the bank offers funded training initiatives.
• Explore opportunities for internal mobility between Ticino and Italian branches, keeping in mind regulatory differences such as the New Cross-Border Worker Agreement of 23 December 2020, which governs cross-border employment.

Step 3: Prepare for potential contractual changes

If the bank initiates restructuring processes, cross-border workers may face:

• Changes to employment contracts, such as alterations to work location or hours. It is essential to carefully review any proposed changes and, if in doubt, seek specialized legal advice on cross-border labor law.
• Voluntary mobility plans, which may include incentives for transfers or reskilling. Evaluate these options carefully, considering the costs and benefits in terms of career growth and quality of life.
• Potential staff reductions, though not imminent. In this case, it is wise to inquire about outplacement programs or job relocation support offered by the bank or local entities such as the Department of Finance and Economy of the Canton of Ticino (DFE).

⚠️ Key consideration: Understand the implications of the G permit (cross-border worker permit) if a transfer to an Italian branch is proposed.

Step 4: Update your tax and social security status

Cross-border workers must ensure their tax and social security positions are up to date, particularly in the event of contractual changes. Specifically, they should:

• Verify the correct application of the Italo-Swiss Convention (9 March 1976) and the New Cross-Border Worker Agreement (23 December 2020), which regulate the taxation of cross-border income.
• Check contributions to SUVA (Swiss National Accident Insurance Fund) and INPS (Italian National Institute for Social Security) to ensure they are current and correctly calculated, even in the case of transfers between branches.
• Consult a tax advisor specializing in cross-border taxation to assess any impacts on tax declarations, benefits, or payment obligations in both countries.

Useful tools for cross-border workers

• Check your G permit validity
• Verify Swiss-Italian tax agreements
• SUVA contribution calculator
• INPS online services
• DFE Ticino – Support for cross-border workers

To face any changes with awareness, cross-border workers can use tools available on the Frontaliere Ticino website:

• salary calculator to compare their salary with the average in the Ticino banking sector.
• guide to the New Cross-Border Worker Agreement to understand the rights and obligations related to cross-border work.
• health insurance comparison to assess whether their coverage remains adequate in case of contract changes.
• interactive map of border crossings to optimise home-to-work commutes in case of office relocations.

What happens if the bank initiates a restructuring?

In the event of announced cuts or reorganisations, cross-border workers should:

• Attend informative meetings organised by management or worker representatives to understand the details of the plan.
• Assess their contractual position with the help of a trade union or legal advisor, especially in cases of collective redundancies.
• Explore alternative options, such as seeking new opportunities within the Ticino or Swiss banking sector, leveraging their acquired skills.

⚠️ Caution: In the event of dismissal, cross-border workers are entitled to notice and severance pay under Swiss law. However, it is crucial to verify that these rights are respected even under Italian regulations, particularly for those working under the cross-border worker status.

Upcoming deadlines and monitoring

At present, no immediate deadlines have been announced for cross-border workers. However, it is advisable to:

• Keep an eye on official communications from your bank over the next 3-6 months.
• Attend events or webinars organised by Frontaliere Ticino or professional associations to stay updated on any developments.
• Contact the DFE of the Canton of Ticino for information on support programmes for workers in case of restructuring.

In summary, Lovaglio’s victory introduces an element of stability, but cross-border workers must remain vigilant and prepared for any changes. Using local tools and resources, such as those offered by Frontaliere Ticino, can make all the difference in managing this transitional phase.

Source: varesenoi.it