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| Deutsche Bank shareholders vote against pay plan for bosses | Deutsche Bank shareholders vote against pay plan for bosses |
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| Deutsche Bank suffered a damaging investor revolt at its annual meeting, when shareholders rejected a new pay scheme for top managers, lambasting the bank’s mounting legal bills and share price decline. | Deutsche Bank suffered a damaging investor revolt at its annual meeting, when shareholders rejected a new pay scheme for top managers, lambasting the bank’s mounting legal bills and share price decline. |
| At the Germany’s biggest lender’s annual meeting in Frankfurt on Thursday, more than half of shareholders (51.9%) voted against a new pay scheme for its top managers, and just 48.1% backed it. The vote was non-binding, however. | At the Germany’s biggest lender’s annual meeting in Frankfurt on Thursday, more than half of shareholders (51.9%) voted against a new pay scheme for its top managers, and just 48.1% backed it. The vote was non-binding, however. |
| Under the pay plan, in addition to bonuses linked to the bank’s and their own personal performance, divisional heads will also get a bonus linked to their division’s performance. | Under the pay plan, in addition to bonuses linked to the bank’s and their own personal performance, divisional heads will also get a bonus linked to their division’s performance. |
| Deutsche’s chairman, Paul Achleitner, suggested that the bank would take the vote into account when implementing the pay plan. Under fire from shareholders, he defended his record and sought to head off criticism that he had been too slow to make changes to top management and strategy. | Deutsche’s chairman, Paul Achleitner, suggested that the bank would take the vote into account when implementing the pay plan. Under fire from shareholders, he defended his record and sought to head off criticism that he had been too slow to make changes to top management and strategy. |
| The bank slumped to a record €6.8bn (£5.2bn) loss in 2015 and its share price has halved over the past year. It has also suspended dividend payments. “I am sticking to my duty and to my responsibilities,” Achleitner told 5,400 shareholders at the annual meeting. | |
| Related: UBS and Deutsche Bank lose bonus tax challenge | Related: UBS and Deutsche Bank lose bonus tax challenge |
| “We in the supervisory board are now confident that Deutsche Bank is on the right track.” The 59-year-old Austrian has chaired the bank since 2012. | “We in the supervisory board are now confident that Deutsche Bank is on the right track.” The 59-year-old Austrian has chaired the bank since 2012. |
| When Achleitner announced that he would seek another term in 2017, there was silence among shareholders. By contrast, John Cryan, who took over as chief executive last July, and departing co-chief executive Jürgen Fitschen, received applause. | |
| A shareholder proposal for a special audit of how top managers had handled the bank’s litigation issues was narrowly rejected – 46.4% of investors voted in favour, and 53.6% against. | A shareholder proposal for a special audit of how top managers had handled the bank’s litigation issues was narrowly rejected – 46.4% of investors voted in favour, and 53.6% against. |
| Cryan said the group expected further big legal charges this year related to a series of scandals, such as manipulation of Libor and foreign exchange rates, that have damaged the bank’s reputation and hurt profits – but added that it was getting closer to the end of the litigation saga. | Cryan said the group expected further big legal charges this year related to a series of scandals, such as manipulation of Libor and foreign exchange rates, that have damaged the bank’s reputation and hurt profits – but added that it was getting closer to the end of the litigation saga. |
| Speaking in German, Cryan, a Brit, said: “I am cautiously confident that we are gradually approaching the home straight as far as our litigation is concerned.” The bank has set aside €5.4bn to settle pending litigation this year. To applause from shareholders, Cryan admitted: “Litigation expenses of this magnitude are completely unacceptable.” | Speaking in German, Cryan, a Brit, said: “I am cautiously confident that we are gradually approaching the home straight as far as our litigation is concerned.” The bank has set aside €5.4bn to settle pending litigation this year. To applause from shareholders, Cryan admitted: “Litigation expenses of this magnitude are completely unacceptable.” |
| Fund manager Ingo Speich, of Union investment, one of Deutsche’s biggest shareholders, said the bank was mired in the “most serious crisis in its history”. Speich described the share price performance as a disaster, noting that the bank’s market value of around €20bn was less than the amount raised from shareholders since the financial crisis. | |
| He added: “After a decade of mismanagement, Deutsche Bank is a restructuring case today.” He said Cryan would have to clean up the mess left by his predecessors. Other shareholders backed Cryan and the newly installed executive team. | He added: “After a decade of mismanagement, Deutsche Bank is a restructuring case today.” He said Cryan would have to clean up the mess left by his predecessors. Other shareholders backed Cryan and the newly installed executive team. |
| Andreas Thomae, a fund manager at Dekabank, said: “We expressly welcome this new beginning.” | Andreas Thomae, a fund manager at Dekabank, said: “We expressly welcome this new beginning.” |