Deutsche Bank Said to Review Further Changes to Management Board

Paul Achleitner
Paul Achleitner, chairman of the supervisory board at Deutsche Bank AG. Photographer: Krisztian Bocsi/Bloomberg

Deutsche Bank AG is reviewing further management changes as Germany’s largest bank tries to cut costs and shrink, two people with knowledge of the plan said.

The review of the eight-member management board is driven by supervisory board Chairman Paul Achleitner and a decision may be announced within the next couple of months, said the people, who asked not to be identified as the talks are private.

Co-Chief Executive Officers Anshu Jain and Juergen Fitschen are also studying further changes below management board level, one of the people said. The two will keep their positions as plans currently stand, the people said.

The co-CEOs are under pressure as investors question whether the plan they announced last month to scale back the consumer banking unit will revive earnings. A more radical proposal to exit retail banking and make deeper cuts at the investment bank was watered down by the co-CEOs and Achleitner amid resistance from labor unions, one of the people said.

As part of the overhaul, Rainer Neske, the head of Deutsche Bank’s private and business clients division, is poised to step down, a person with direct knowledge of the matter said on Monday.

Neske, 50, sits on the lender’s management board, where he has overseen the company’s retail operations. He had pushed for the bank to sell all of that business as a stand-alone company.

The bank’s supervisory board meets May 20 and Neske’s successor, most likely to come from within the company, may be named as soon as this week, one of the people said.

Ronald Weichert, a spokesman for the Frankfurt-based lender, declined to comment on the discussions.

Deutsche Bank is now seeking to cut annual costs by an additional 3.5 billion euros ($3.9 billion), sell a majority stake in its Postbank consumer unit and reduce leverage at the investment bank.

With investors questioning the bank’s lower profitability targets and signaling concern Deutsche Bank didn’t give enough detail on how it will achieve the cost cuts it announced last month, the company pledged to provide more information within 90 days.

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