Deutsche Bank plans board reshuffle
Deutsche Bank is preparing to reshuffle its supervisory board as the future of CEO John Cryan and chairman Paul Achleitner is called into question.
John Thain, a former CEO of Merrill Lynch, is expected to join the troubled German bank in May, according to a source close to the lender's plans. He is one of four nominees invited by the supervisory board to fill positions opening up this year, said the source, who asked not to be identified because the matter isn't public.
Cryan has been struggling to retain investor backing amid a slump in revenue despite resetting strategy since taking over in 2015. Concerns about the bank's turnaround prompted Mr Achleitner to hold discussions with potential successors, people with knowledge of the discussions said last week. The chairman is also coming under fire for having failed to forge a recovery after going through three CEOs in six years.
"I definitely welcome the overhaul of the supervisory board, although I would have liked to see it happen earlier," said Andreas Meyer, who manages fixed income securities including Deutsche Bank bonds at Aramea Asset Management in Hamburg.
He noted the shift to more directors with financial-sector backgrounds on the board, though a balance might be preferable, he said. "Should Achleitner now decide to replace Cryan, he has to step down as well," said Meyer. "He has been chairman of the supervisory board since May 2012 and that means he shares responsibility for the current situation."
Deutsche Bank has had a presence in Ireland since 1991 and employs over 650 people at its offices in Dublin's EastPoint Business Park. (Bloomberg)