UniCredit says Chairman Padoan to step down at end of term

MILAN, October 28 (Reuters) - Italy's second-biggest UniCredit said on Wednesday that Chairman Pier Carlo Padoan, 76, will step down from the role at the end of his term due to personal reasons.

Padoan and the rest of the UniCredit board, including CEO Andrea Orcel, end their mandate in early 2027 with shareholders due to name a new board when they meet to approve 2026 results.

Padoan, a former economy minister, joined UniCredit in April 2021 when Orcel first arrived.

Padoan secured a three-year reappointment in 2024 though UniCredit had looked into a potential replacement to improve strained relations with Italy's centre-right government.

Padoan had served as minister under successive centre-left administrations.

After gaining control of Commerzbank with almost 50% of its shares through a hostile bid, UniCredit now faces the challenge of achieving targeted savings at the German rival and advancing towards a full integration which requires it to buy Berlin's residual stake.

• Padoan will work closely with the bank's nomination committee to identify a suitable successor, UniCredit said

• Padoan "has been a source of sound counsel and wisdom, and I have greatly valued our partnership," Orcel said in a statement

• Padoan served as Italy's economy and finance minister from 2014 to 2018

• UniCredit's governance rules give the outgoing board powers to present a list of candidates for its replacement

• However, changes to the law governing how outgoing boards name their successors have discouraged peers such as insurer Generali from presenting board slates, as the new rules can lead to unpredictable and potentially chaotic outcomes.

(Reporting by Enrico Sciacovelli; Editing by Valentina Za)