Investors threaten Deutsche boss with board shake-up
INVESTORS have told Deutsche Bank’s under-pressure boss John Cryan that another set of disappointing results could trigger a management shake-up.
The performance of its once glowing investment bank is set to dictate the mood between top shareholders and the bank’s board as it prepares to publish annual results in the coming weeks.
“Cryan’s contract runs until 2020 which I think is too long for lacklustre results,” said Michael Huenseler, an investor at Assenagon Asset Manage- ment, a shareholder in the lender.
“A major disappointment [in the investment bank] will inevitably lead to shareholders demanding a change at the helm.”
Ingo Speich, an investor at top 20 shareholder Union Investment, said that shareholders were gasping for “some proof ” that Deutsche could turn around its investment bank. “If we see very weak numbers compared to the US peers then I guess we have to bring the discussion forward,” he said. “There’s currently no proof that the strategy is working.”
The bank currently ranks fourth for investment banking revenue in Europe, the Middle East and Africa, according to Dealogic, with Wall Street banks Goldman Sachs, JP Morgan and Citigroup all ahead of it.
If the bank ends the year in this position it will be the first time it has slid out of the top three since 2009. Deutsche Bank declined to comment.