By Jack Ewing
FRANKFURT — Deutsche Bank shareholders had plenty of reasons to be unhappy as they converged in a Frankfurt concert hall Thursday for the troubled lender’s annual meeting.
A record low share price. An aborted megamerger with crosstown rival Commerzbank. Money-laundering scandals. New revelations about the bank’s relationship with Donald J. Trump.
The question Thursday, as the shares sank another 2 percent, was whether investors were outraged enough to deliver an uncommon rebuke to top management — one that could put pressure on Paul Achleitner, the supervisory board chairman, to resign.
The result, after dozens of shareholders took a lectern to rail against Mr. Achleitner and other top managers, was mixed. Mr. Achleitner avoided an embarrassing vote of no confidence, but the margin signaled that a substantial number of shareholders are unhappy with his leadership. Investors also signaled dissatisfaction with Garth Ritchie, the head of Deutsche Bank’s money-losing investment bank.
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Mr. Achleitner benefited from the forbearance of large shareholders who are not happy with his performance but fear the impact of further management turmoil. There is also a dearth of credible successors in Germany.
“It’s shocking and sad what has become of Deutsche Bank,” Alexandra Annecke, a portfolio manager at Union Investment, a German fund manager, told shareholders.
But she said the fund, which owns 0.4 percent of Deutsche Bank shares, would vote to ratify management. “We want to give Mr. Sewing and Mr.
a chance,” she said, referring to Christian Sewing, the chief executive.
a chance,” she said, referring to Christian Sewing, the chief executive.
Investors representing 72 percent of shares voted to ratify Mr. Achleitner’s performance, down from 84 percent last year and slightly lower than for other members of the supervisory board. Tepid support for Mr. Achleitner could put pressure on him to resign before his term ends in 2022.
Mr. Ritchie is also under pressure after his performance was endorsed by 61 percent, a sharp decline from 95 percent in 2018.
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In a speech to shareholders, Mr. Sewing, who received 75 percent approval, promised that he would address problems at the investment bank, which will face “tough cutbacks.”
Sylvie Matherat, the bank’s chief regulatory officer, also was ratified by only 61 percent as shareholders registered their frustration that Deutsche Bank continues to be battered by scandal.
Normally the vote to ratify top managers at German shareholder meetings is an almost unanimous formality. But investors in European companies have
recently shown their willingness to force change at troubled companies.
recently shown their willingness to force change at troubled companies.
Last month, corporate Germany was shocked when shareholders in Bayer, the drug and chemical maker, voted not to ratify the performance of the management board. The investors were enraged by the company’s botched acquisition of American pesticide maker Monsanto.
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