Deutsche Bank appoints Jain, Fitschen as new co-CEOs

From K Mammen Mathew
Berlin, July 26 (PTI) Deutsche Bank has appointed Anshu
Jain as the co-CEO to succeed Management Board Chairman Josef
Ackermann, who leaves office in May next year.
Jain, 48, the head of Deutsche Bank's highly successful
investment banking division based in London, will take over
the leadership of Germany's largest bank together with his
management board colleague, Juergen Fitschen, when Ackermann
makes way for them one year ahead of his current term expiring
in May, 2013.
Deutsche Bank made the announcement on Monday evening
after a special meeting of the supervisory board ahead of its
regular meeting on Tuesday, at which the bank will announce
its quarterly results.
The supervisory board's endorsement of Chairman Clemens
Boersig's nomination of Jain and Fitschen for leadership of
the bank three weeks ago brings to an end speculation about
who will take over the reins of Germany's leading financial
institution from Ackermann.
The two members of the management board were appointed as
equal co-chairmen of the board and co-chairmen of the group
executive committee of the bank, it said in a press statement.
Fitschen, 62, who manages Deutsche Bank's domestic
business, will serve in his new capacity for three years until
2015, while Jain has a five-year contract until March, 2017.
This raises the possibility for Jain to take over as the
sole head of the world's fourth largest investment bank when
Fitschen's term expires.
"I am greatly honoured to lead this wonderful institution
together with Mr Juergen," Jain said, responding to the
supervisory board's decision.
Fitschen said, "I cannot imagine a better partner than
Anshu to continue the bank's successful course in the domestic
market, as well as abroad."
The supervisory board's decision was unanimous, with the
close involvement of Ackermann in the entire process, Boersig
said, according to the statement.
The new leadership will strive for renewal, while
ensuring continuity. Thereby, it will create the best
conditions for the bank to continue on its successful course,
he said.
Jain has been at the centre of the search for a successor
to Ackermann and various options explored in the months past
focused on keeping the India-born investment banker with
Deutsche Bank.
He has earned a great reputation by transforming the
company's investment banking into a profitable business and
contributing to the steady growth in its earnings.
Investment banking has a more than 70 per cent share in
Deutsche Bank's overall profits. However, London-based Jain's inexperience at high-level
political networking in Germany and deficiency in
communicating in German were a disadvantage for him to take
over the sole leadership of the bank.
Therefore, Boersig proposed that he teamed up with
Fitschen, who has excellent contacts to the centres of power
in Berlin and good relations with German business and
industry.
It is hoped that Fitschen can carry out the lobbying work
and communicate with shareholders until Jain builds up his
political contacts and improves his ability to communicate in
German.
Deutsche Bank is in favour of Ackermann replacing Boersig
as chairman of the supervisory board so that he will remain
with the bank after ten years as chairman of the management
board, the statement said.
Boersig has expressed his intention to step down in May
next year after leading the control committee during the last
six years and this opens up the possibility for Ackermann to
succeed him, the statement said.
Boersig will continue to be associated with the bank as a
member of the European Advisory Board of the bank.
Ackermann, who in April denied any ambitions to shift to
the supervisory board, said he is now prepared to take over as
its chairman and to serve the bank in the future as well.
He said he is quite pleased with the appointment of Jain
and Fitschen as his successors.
Ackermann had changed his mind after he was persuaded in
recent weeks by several board members, especially its
employees representatives, to remain with the bank in view of
his top-level political contacts, extensive knowledge of the
company's operations and his high esteem in global banking,
media reports said.
Ackermann, a Swiss national, also came under pressure
from outside the bank to seek a new term as chairman of the
supervisory board after he was invited by the heads of state
and government of the 17 euro zone nations to join them when
they agreed on a comprehensive financial rescue plan for
Greece, including a second bail-out package of 109 billion
euros, at their summit in Brussels last Thursday, the reports
said.
However, he can move to the supervisory board only when
the bank's shareholders, who hold 25 per cent of the base
capital, propose him for the chairmanship at the next
shareholder's meeting in May, 2012.
Deutsche Bank said it will do everything necessary to
meet the legal conditions for Ackermann to take over as
chairman of the supervisory board with effect from the
shareholder's meeting in 2012.