2nd UPDATE: Deutsche Bank: Ackermann Won't Head Supervisory Board; Proposes Allianz CFO
15 November 2011 - 6:39AM
Dow Jones News
Germany's Deutsche Bank AG (DB, DBK.XE) said Monday that Chief
Executive Josef Ackermann won't take over as chairman of the
supervisory board when he steps down in May and proposed Allianz SE
(ALV.XE) financial chief Paul Achleitner for the position
instead.
Citing "extremely challenging" conditions on the international
financial markets and in the political-regulatory environment,"
Ackermann said he must focus on his tasks as CEO right now,
according to a statement from the bank. This means he can't spend
time seeking the support of shareholders for his bid to be
supervisory board chairman.
Supervisory board candidates need the support of 25% of the
shareholders to be elected.
A person familiar with the matter told Dow Jones Newswires that
Ackermann didn't have the time do the necessary lobbying and
couldn't win their backing. Another person familiar with the matter
said: "It became obvious that Ackermann couldn't secure this."
Ackermann's withdrawal coincides with news that German
prosecutors have searched the offices of Deutsche Bank executives
and former executives, including Ackermann himself, following
allegations that they gave false testimony in a trial brought
against the bank by late German media mogul Leo Kirch.
This investigation hasn't helped Ackermann's supervisory board
ambitions, the second person added. As the bank's top supervisor,
it would mean Ackermann would have to lead investigations into his
own actions.
Separately, Allianz said its financial chief Paul Achleitner has
signaled Deutsche Bank that he is available for the supervisory
board post.
Achleitner would leave the insurer's executive board at the end
of May, should Allianz's supervisory board release him from his
contractual obligations. An Allianz spokesman declined to comment
further.
Allianz Chief Executive Michael Diekmann said in a memo to
staff, seen by Dow Jones Newswires, that Achleitner's departure
would be a great loss to the company but also recognition of
Achleitner's "extraordinary contribution to the success of Allianz
in the last decade."
Allianz, Europe's largest insurer by market capitalization, said
a successor for Achleitner on the company's management board will
be appointed by its supervisory board in due time.
Allianz will inform all employees about the next steps,
respecting the governance of both companies, CEO Diekmann said in
the memo to staff.
He also lauded Achleitner's "extraordinary contribution to the
success of Allianz in the last decade that he shaped within our
team with intelligence, foresight and an outstanding performance,
witnessed by our superior investment results."
He noted that Achleitner's 30 years of capital markets
experience qualify him for the challenging job.
Achleitner's appointment could shift the weight at the helm in
favor of investment banking once Anshu Jain and Juergen Fitschen
jointly assume CEO posts next May. Austrian-born Achleitner, 55,
joined Allianz in 2000. Prior to that, he worked 11 years for
investment bank Goldman Sachs in New York, London and
Frankfurt.
Achleitner also is chairman of the German finance ministry's
stock exchange specialist commission and a member of the takeover
board of the German government's Federal Financial Supervisory
Authority, or FFSA.
German Finance Minister Wolfgang Schaeuble told Handelsblatt in
an interview that he welcomes Ackermann's decision. It is not usual
procedure for a CEO to switch directly to supervisory board
chairman, Schaeuble said, adding that Ackermann will remain a
competent adviser for politicians.
-By Eyk Henning, Ulrike Dauer and Laura Stevens, Dow Jones
Newswires, +49 69 29 725 108; eyk.henning@dowjones.com