Deutsche Bank wants to claw back bonus money from former top executives including Josef Ackermann. The German lender's former CEO sees no legal basis for a payback.
Frankfurt-based Deutsche wants bonus paybacks from eleven former top executives, including Josef Ackermann, CEO until 2012; Anshu Jain, who ran investment banking until last year; and Hugo Baenziger, risk chief until four years ago.
Ackermann is reportedly being asked to relinquish 3.5 million euros – something he isn't prepared to do. He is prepared to discuss the question of forfeiting bonus money that hasn't yet been paid out, Ackermann said at a conference in Germany according to «Bloomberg», but not paying back funds he has already received.
«I’ve demonstrated on multiple occasions that I’d be ready to show support for a bank which is in difficulty,» said Ackermann, who has kept a low profile since leaving Deutsche and Zurich Insurance, where he left following the suicide of finance chief Pierre Wauthier.
Criticism of Cryan
The former CEO criticized current Deutsche Bank head John Cryan, who is grappling with a wide-ranging restructuring and capital-bolstering of the beleaguered German bank, saying Cryan had broken with a long tradition of not criticizing former CEOs and successors.
Ackermann spent 16 years at the German bank, ten as Chief Executive. He and Jain, the investment banker, build a fixed income powerhouse which made millions – for the bank and themselves. Jain alone is reported to have earned 300 million euros from Deutsche Bank.
The bank is now paying dearly for its elaborate investment banking operations, which have become far more costly to maintain, and is reportedly exploring whether it can hold former executives financially responsible. Deutsche has paid out 4 billion euros on dividends to shareholders since the financial crisis – but six times that in employee bonuses.
