A majority of Mediobanca SpA investors voted to keep Alberto Nagel as chief executive officer for the next three years, even as the lender’s main shareholders voted to support a minority list of board candidates.
Mediobanca’s majority list including Nagel and Chairman Renato Pagliaro was backed by 40.4% of bank’s investors at its shareholder meeting on Saturday. The minority list presented by Delfin Sarl, the holding company of the late billionaire Leonardo Del Vecchio, was supported by 32% of holders. Less than 3.5% went to the Italian money manager Assogestioni’s list.
The vote brings an end to a drawn-out battle between Delfin and the bank’s management. The next board will have 12 out of 15 members chosen by the current directors, giving it more stability and backing for the current strategy over the next three years.
Delfin’s list, which was also voted by Italian tycoon Francesco Gaetano Caltagirone, who holds a 10% stake, received 2 board seats.
Nagel, a veteran at the bank, has navigated Mediobanca through the global financial crisis, the European debt crisis and countless Italian government changes. He’s also prevailed through various internal battles and big strategy shifts.
Del Vecchio often criticized Nagel for being too conservative and being overly dependent on ties to Assicurazioni Generali SpA, the insurer in which Mediobanca owns a 13% stake. Earlier this month Delfin, now run by Francesco Milleri, presented its own list of candidates after it failed to reach an agreement to form a group backed by both the current board and Delfin.
Mediobanca expanded by buying stakes in companies owned by some of Italy’s most powerful families such as the Agnellis, Pirellis and Ferruzzis. Nagel signalled an end to that strategy in a major revamp in 2013, instead strengthening Mediobanca’s investment bank, retail business and wealth management.
Nagel has been making selective hires and bolt-on deals as he seeks to build up activities such as wealth management and increase cooperation with the corporate and investment unit. Large acquisitions in wealth management may be considered if opportunities arise, the CEO has often said. The executive is investing in distribution channels for all business segments to increase revenue with stable risk-weighted assets.
Earlier this week Mediobanca reported better than expected third-quarter profit on higher revenue and lower costs and provisions.
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