Italian Treasury Backs Paschi CEO for New Term Amid Headwind

Italy’s Finance Ministry is backing Banca Monte dei Paschi di Siena SpA Chief Executive Officer Luigi Lovaglio for a new term, winning him support from a key stakeholder after other investors questioned his plans for the lender.

The ministry favors Lovaglio’s renewal as CEO when his mandate expires in April after he returned the lender to profitability, according to people familiar with the matter. Monte Paschi is working on a list of candidates for a new board as part of a broader overhaul of the governance framework.