Ousted Deutsche Bank boss to score 9 mn-euro payoff
Frankfurt am Main (AFP)
Former Deutsche Bank chief executive John Cryan can expect a payoff of around 9.0 million euros ($11.1 million) after he was unwillingly shunted out of his post, internal rules at the lender show.
When a board member leaves before their contract is up, "the severance payment, as a rule, is two annual compensation amounts," based on pay for the previous financial year and expected pay for the current year, Deutsche's 2017 annual report says.
Cryan took home a salary of 3.4 million euros in 2017, while there had so far been no indication of his pay this year.
That could give him the right to around 6.8 million euros in severance pay plus the 1.9 million euros the bank reported in his retirement account.
The Frankfurt institution declined Tuesday to comment on Cryan's "golden parachute".
He is set to leave the bank at the end of the month -- well in advance of the end of his contract in May 2020 -- after supervisory board chairman Paul Achleitner pushed through over the weekend a replacement, 47-year-old career Deutsche banker Christian Sewing.
A former finance director at UBS, Cryan waived any bonus payment for 2017 after the bank booked its third annual loss in a row.
In an interview with newspaper Frankfurt Allgemeine Zeitung Tuesday, Achleitner said Cryan had "rendered great service" to Deutsche Bank.
The British CEO neutralised the worst legal threats hanging over Deutsche from the financial crisis, in part by paying billions in fines and compensation, and cut operating costs.
And he strengthened Deutsche's capital foundations with an 8-billion-euro ($9.8 billion) share issue last year and floated asset management division DWS on the stock market in March, "setting the scene for a successful future," Achleitner said.
Nevertheless, "his weak point was the speed at which the board took decisions and then pushed through their implementation."
Deutsche has yet to return to profitability, while the share price has slumped more than 50 percent in the past two years -- around 30 percent since the start of this year alone.
News of Sewing's appointment briefly pushed the shares up on Monday morning, but Tuesday saw the bank at the bottom of the DAX index of blue-chip German shares, losing 1.1 percent to trade at 11.36 euros by midday (1000 GMT).
© 2018 AFP