The Annual General Meeting of Deutsche Bank AG, which took place on the 20th May 2015, shook up the top Management. Angry shareholders have appointed the CO-CEOs Anshu Jain and Jürgen Fitschen as the main responsible of the Bank’s underperformance. In the past years, the bank has suffered plunges in profitability largely due to the vast amount of money expensed in fines and litigation after the mortgage crisis, and linked to Libor and Forex manipulations. During the meeting, Anshu Jain, a former trader and investment banker, emerged as the man who was going to be in charge of the new restructuring plan. The main driver of the plan was a strong cost-cutting campaign, which could boost profitability in all areas of business. In the last three years, Deutsche Bank’s stock has been one of the worst performing in the Banking sector. The plan, indeed, which is supposed to add billions to the bottom line, is very ambitious.
Few weeks later, yesterday, probably pushed by the board and the unhappy shareholders, the two CO-CEOs handed in their resignation note. Anshu Jain will be replaced by John Cryan, member from the supervisory board and former CFO of UBS, most likely at the end of June, while Jürgen Fitschen will probably step down after the next general meeting. The dual Management system is poised to end in one year. After the news, Deutsche Bank’s shares are rallying up, showing how investors are more confident on the classic single CEO management, and more reliant on the figure of the new CEO John Cryan. He will have a heavy burden to carry forward. Will he be able to implement the new restructuring plan and lead one of the most important European Bank to profitability again? Time will tell us.
By:
Tancredi Viale @TanViale