Deutsche Bank gives Jain more power in shake-up, investors object
By Thomas Atkins and Kathrin Jones
FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE: Quote) gave more power to co-chief executive Anshu Jain in a management shake-up that was roundly criticized by investors on Thursday who demanded more changes to restore confidence in the leadership of Germany's largest bank.
The bank removed some executives and re-arranged responsibilities before the annual shareholder meeting, putting Jain in charge of a reorganization and cost-cutting despite being under fire for missing previous targets.
Only 61 percent of shareholders at the meeting voted in favor of Jain and Fitschen's 2014 performance in a non-binding vote. Last year they received 89 percent.
Making Jain directly responsible for cutting Deutsche Bank's costs by 4.7 billion euros ($5.2 billion), selling its Postbank DPBGn.DE retail business and paring back its investment bank puts huge pressure on the former trader.
"Jain now has 12 to 18 months to deliver,” said one top-20 shareholder.
A mover and shaker in financial capitals and an engaging conversationalist in private, Jain's inability to speak German means he often appears awkward at shareholder events, dominated by small and sometimes vociferous investors.
He gave a long speech in English on Thursday but to meet German law, which requires shareholder meetings be conducted in German, Jain's microphone was turned off to run a German voice-over, prompting giggles from some in the audience.