09 May 2019
Deutsche Bank faces a possible public rebuke from shareholders after two influential investor advisory groups urged them to issue a vote of no confidence in the lender’s management.
In a highly critical report, U.S. proxy advisor Institutional Shareholder Services (ISS) said it recommended investors do not ratify management’s work last year when asked to do so at an annual shareholder meeting on May 23.
“At a certain point, shareholders should make their concerns heard,” it said, singling out lax money laundering controls and the group’s “precarious” low share price, which it said threatened “Deutsche Bank’s very existence”.
“It is time for shareholders to hold the bank personally responsible,” ISS said, adding that “underlying patterns of leadership and the culture of risk” had not improved despite many promises to do so.
Deutsche Bank’s management, under the watch of chairman Paul Achleitner, has faced renewed criticism amid dwindling profits and strategic uncertainty, underscored by the recent collapse of merger talks with Commerzbank.
By Hans Seidenstuecker and Arno Schuetze, Reuters, 8 May 2019
Read more at Reuters
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