Deutsche Bank is facing a peculiar situation as the financial services provider is losing top executives one after the other. That suggested that there is no guarantee that it will end with a specific person or period. None-the-less, the executives leaving has undoubtedly shaken the top ranks of the bank irrespective of who is at fault. The latest to join the list of exit is its chief operating officer and head of investor relations.
Kim Hammonds, who is the chief operating officer of Deutsche Bank, has struck a mutual agreement with the company that enables her to leave at the annual general meeting on May 24. Incidentally, she has reportedly called the bank as ‘the most dysfunctional company’ she has ever worked for in her career, Bloomberg Quint reported. The exit of a senior executive came on the heels of John Andrews, who was the head of investor relations for five years, leaving the firm citing the management changes effected recently.
Aside from these two key executives, the biggest exit was that of John Cryan as the CEO of the Frankfurt-based lender. The former CEO had to face the consequences of a sustained drop in the share price of the financial service provider and questions were raised in the direction of the investment bank. He was replaced by Christian Sewing. Before the exit of Cryan, there was intense speculation about his future as the chairman Paul Achleitner remained silent.
Interestingly, shareholder advisory firm, DSW, VP, Klaus Nieding, told Bloomberg that “The way Achleitner replaced the CEO was unprofessional and damaging to everyone involved. But Hammond’s demise is of her own making. She shouldn’t have made those comments.” He was not convinced about the controversial comments made by the COO about the company during an internal meet last month. The bank indicated that it would hire a fresh COO in the near future once it completes consultations with regulators.
The outgoing COO was entrusted with the task of reducing the costs of information technology and streamlines the operating systems number. However, there were concerns about the progress, which were considered as slow, thus leading to skepticism among the supervisory board whether she was the right person to handle it. Her rating took a beating when reports suggested about her disparaging comment, and she has not refuted the remarks after it became public.
Chairman under Fire
The chairman of Deutsche Bank also came under fire for his role in the current management changes. Both investors and board members have not spared Achleitner and criticized him for media leaks on his search for a new CEO apart from his failure to select external candidates. Investors and board members were not happy with his selection of Garth Ritchie as investment bank head. He would be facing rough weather when he participates in the annual shareholder meeting in May. Investors believe that he was as responsible as Cryan for the woes of the lender.
Though Cryan managed to sort out misconduct cases involving billion dollars, he could not restore revenue growth. While he managed to raise 8 billion Euros from investors last year, he resorted to selling a minority stake in the bank’s DWS asset management business through an IPO.