Deutsche Bank AG appointed Christian Sewing Chief Executive Officer, ending John Cryan's reign after less than three years, as the question was raised as to how Europe's largest investment bank would be managed in the future. The lifelong German Bank employee will take over the business management from now on, said the Lender on Sunday in Frankfurt. Garth Ritchie has been promoted to sole director of the Securities Department and becomes Deputy CEO and Chief Administrative Officer Karl von Rohr. Cryan and Marcus Schenck, the co-vice chief at Sewing, leave the bank.
The appointments are followed by weeks of intense speculation about the bank's leadership, which forced Cryan to publicly state that he was committed to the role, while the chairman ran an agreement with the shareholders regarding a possible successor. Some of the measures proposed by Achleitner had not been adopted unanimously by the Supervisory Board. A particular sticking point is the proposed change of leadership at the investment bank, said one person.
"We need a new dynamic of execution in the management of our bank," said Achleitner in a statement in which he thanked Cryan.
Over the past six years, Deutsche Bank has achieved three top leadership positions under pressure from investors to improve profitability and reverse a stock market slump: the strategy of the largest German lender and the role it plays in US investment banking Cryan reduced risk and ordered billions in misconduct, but failed to restore revenue growth, although fresh capital was raised.
Sewing, who joined Deutsche Bank as an apprentice in 1
Sewing also initiated the internal investigation of Deutsche Bank into its role in alleged money laundering at the Bank's Russian bank, the so-called mirror trades, which led to the lender's shuttering (19659004) Frank Strauss, who co-authored with Sewing's Private and Commercial Bank becomes the sole leader of this unit.
Ritchie, a two-decade veteran of the bank overseeing all trading operations, had weighed options for his future, people said last week , He joined Deutsche Bank in 1996 and moved into stock trading in 2010 to become sole director of the business.
Deutsche Bank's trading income on equities and bonds, the largest single source of income, has fallen 32 percent since the end of 2015, raising investor concerns.
Schenck, who co-advised the investment bank at Ritchie, did not want a position in the new leadership team, and informed the board before Easter that he was planning to leave, Deutsche Bank said.
"We very much regret the decision of Marcus Schenck and thank him for his contribution in a decisive phase for our bank," says Achleitner.
Achleitner has been increasingly looking for a successor in recent weeks. The discussions focused on a leader who speaks German and works well with regulators, people who are familiar with the issue said. Sewing, along with Schenck and Chief Financial Officer James von Moltke, was considered the best internal contender, while the bank and its backers also turned to external candidates, including Christian Meissner of Bank of America Corp. Matthew Zames, the employee familiar with the matter, said last week:
Achleitner broke off his holiday to meet with stakeholders last week to discuss his next move. The fact that CEOs and strategic changes have fallen since his appointment as Chairman in 2012 has also led some analysts and investors to question Achleitner's responsibility.
In recent days, investors have expressed mixed views about Cryan. At least two key investors press for his removal, another has signaled that they will not stand in his way, if Achleitner gets rid of him, the people said.
Cryan, himself a member of the Supervisory Board, took over the mandate in mid-2015 to stabilize and restructure the company. Just over a year ago, he appointed the co-CEOs of Schenck and Sewing as part of the company's latest strategy review
– With support from Eyk Henning