London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

Deutsche Bank chairman urged to step down by US private equity firm Cerberus

Deutsche Bank chairman urged to step down by US private equity firm Cerberus

Cerberus has lost faith in Achleitner and its desire for change has increased since merger talks with Commerzbank failed earlier this year, according to the sources.
Achleitner took over as chairman of Deutsche Bank in 2012 and its share price is down more than 73% since then. Separate sources within the bank, who also wanted to remain anonymous, have told CNBC there are growing frustrations over the failed Commerzbank merger and an unsuccessful return to profitability.

U.S. private equity firm Cerberus is hoping to replace Deutsche Bank Chairman Paul Achleitner, two sources confirmed to CNBC on Tuesday.

Cerberus has lost faith in Achleitner and its desire for change has increased since merger talks with Commerzbank failed earlier this year, according to the sources. The private equity firm has a 3% stake in Deutsche Bank.

The German bank has declined to comment on the story which first reported by the Financial Times. However, two people familiar with the matter told CNBC on the condition of anonymity that Cerberus was indeed pushing for the 63-year-old chairman to be replaced.

Germany’s flagship lender has been in the news for all the wrong reasons — from settlements with the U.S. Department of Justice, to management reshuffles, weak earnings, massive fines, constant restructuring, merger speculation and steep stock price falls.

In the past, Deutsche Bank’s other big shareholders have raised concerns about the bank’s failing strategy and have called for a reshuffle of the board. In May, Deutsche Bank’s proxy advisor Institutional Shareholder Services (ISS) called for shareholders to vote against the board, citing a series of scandals resulting from the bank’s failure to uphold anti-money laundering controls and causing reputational and monetary damage.

The FT has also reported that the lender’s other large shareholders – members of the Qatari royal family, funds managed by former J.P. Morgan Chase executive Doug Braunstein and asset manager BlackRock – have concerns about Achleitner’s performance.

Achleitner took over as chairman of Deutsche Bank in 2012 and its share price is down more than 73% since then. However, the sources told CNBC that he is keen to stay on until the end of his term in order to oversee Deutsche Bank’s 150th anniversary next year. Achleitner’s term is due to end in 2022.

Achleitner has presided over a number of management changes at Deutsche Bank, from co-CEOs Anshu Jain and Jürgen Fitschen to John Cryan and now Christian Sewing. Separate sources within the bank, who also wanted to remain anonymous, have told CNBC there are growing frustrations over the failed Commerzbank merger and an unsuccessful return to profitability.

However, ousting a chairman of the board is not easy in Germany. The shareholders will either need to wait until the next annual general meeting, which takes place in May 2020, or form a majority to call in an extraordinary shareholder meeting. For now, the pressure is building on the board to recalibrate its strategy.

Deutsche Bank has been under pressure for a number of years to trim its investment banking division. The bank reported massive losses in the third quarter of 2019, with a 5% fall in investment banking revenues from a year ago. Investment banking is a specific division related to the creation of capital for other companies, governments and other entities.

In July, Deutsche Bank announced it will cut 18,000 jobs for a global headcount of around 74,000 employees by 2022. The bank aims to reduce adjusted costs by a quarter to 17 billion euros ($19 billion) over the next several years.

Shares of Deutsche Bank were up 1.8% on Tuesday morning but are down more than 20% over a 12-month period.
Newsletter

Related Articles

0:00
0:00
Close
UK Prison Officer Sentenced for Inappropriate Conduct with Inmate
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
×