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Report: Large Deutsche Bank Shareholder Wants Chairman Fired

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Report: Large Deutsche Bank Shareholder Wants Chairman Fired

American private equity firm Cerberus owns a 3% stake in Germany's Deutsche Bank AG (NYSE: DB) and is pushing for the ouster of Chairman Paul Achleitner, CNBC reported Tuesday, citing two sources. 

What Happened

Achleitner was named chairman of Deutsche Bank back in 2012; since then, the stock has lost more than 70%. Most recently, the German bank failed to close a merger with Commerzbank, and this merely added to Cerberus' frustration, CNBC said. 

Two sources close to the matter indicated Cerberus is pushing for a new chairman, and this desire is shared among other large shareholders.

For example, the Qatari royal family and BlackRock, Inc. (NYSE: BLK) both have concerns with Achleitner's leadership.

Separate sources inside Deutsche Bank told CNBC that workers are also frustrated after the botched Commerzbank merger and the absence of any plan to return to profitability.

Why It's Important

Removing the chairman of a German company is a complex task, as it requires a majority of investors to call an extraordinary shareholder meeting, according to CNBC.

Otherwise, a vote will need to wait until the next scheduled annual general meeting in May 2020.

What's Next

CNBC's sources also said the chairman has no plans to leave his post. He plans on remaining with the company until 2022 and plans to oversee Deutsche Bank's 150th anniversary next year, they said. 

The stock was trading 0.13% higher at $7.61 at the time of publication. 

Related Links:

Analyst: Deutsche Bank Profits To Remain Under Pressure

Wall Street Skeptical Of Deutsche Bank's Restructuring Plan

Photo by Dustin Blitchok. 

Posted-In: banks Cerberus CNBCNews Eurozone Management Markets Media

 

Related Articles (BLK + DB)

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