Deutsche Bank Board Mulls Exit of Operations Chief in Reshuffle -- 2nd Update
April 18 2018 - 12:09PM
Dow Jones News
By Jenny Strasburg
Deutsche Bank AG's supervisory board is discussing another
potential executive reshuffle at the troubled German lender,
including the possible departure of Chief Operating Officer Kim
Hammonds, according to people familiar with the matter.
As of Wednesday morning, the bank's supervisory board was
planning a conference call for later in the day with Chief
Executive Christian Sewing, the people said. Mr. Sewing replaced
John Cryan as CEO earlier this month following weeks of management
tumult at the bank.
One topic supervisory board members were planning to discuss is
Ms. Hammonds, an ally of Mr. Cryan who has been in talks about
potentially leaving Deutsche Bank as soon as next month, the people
said. No decision regarding Ms. Hammonds or her role had been made
as of Wednesday morning, the people said. However, Ms. Hammonds has
told some colleagues that she expects to leave based on high-level
discussions inside the bank ahead of the planned call, according to
some of the people.
Ms. Hammonds didn't respond to requests for comment. A Deutsche
Bank spokeswoman declined to comment.
Ms. Hammonds oversees technology and operations for the bank and
is one of two women on its 11-member management board. She joined
the lender in 2013 as chief information officer and global co-head
of technology and was promoted to the management board in August
2016.
The discussions are the latest sign of turbulence at the top of
Germany's biggest lender. Mr. Cryan's dismissal April 8 followed
months of conflict on the management board and indecision on the
supervisory board over whether to replace him, The Wall Street
Journal has reported. The supervisory board hires and dismisses
senior executives.
Fixing outdated technology at Deutsche Bank has been a core
challenge during a multiyear turnaround that has featured multiple
changes to the management board. Ms. Hammonds, who previously was
chief information officer at Boeing Co., has overseen projects to
simplify and modernize Deutsche Bank's systems, which Mr. Cryan and
other senior executives repeatedly have described as long-neglected
and hampering the lender's ability to compete in areas such as
securities trading.
Supervisory-board members and senior executives credit Ms.
Hammonds, a mechanical engineer who also holds a graduate business
degree, with building out a technology operation that had been
sorely lacking, streamlining quality control and security and
attracting new talent to Deutsche Bank, people close to the bank
say.
But clashes among executives have been relentless, with fights
over spending and bonuses, and accusations from some managers that
the pace of technological progress has been too slow.
The CEO switch this month accelerated discussions about other
potential changes to the management board, which has suffered from
turnover and infighting for several years, particularly during the
past six months, the people said.
If Ms. Hammonds leaves, the bank could assign some of her
management-board responsibilities to another executive, the people
familiar with the internal discussions said. One possibility that
has been discussed is for technology oversight staff to report into
Karl von Rohr, a longtime Deutsche Bank executive and
management-board member who is chief administrative officer, the
people said.
With last week's CEO change, Mr. von Rohr was named one of two
presidents of Deutsche Bank. Previously Mr. Sewing was co-president
with Marcus Schenck, co-head of the investment bank
Mr. Schenck is leaving the bank next month. Former global
markets chief and investment-banking co-head Garth Ritchie is now
sole head of the investment bank and co-president of Deutsche Bank,
with Mr. von Rohr.
Deutsche Bank's head of investor relations, John Andrews, is
leaving the bank after five years, The Wall Street Journal reported
earlier Wednesday, citing an internal memo to employees from Chief
Financial Officer James von Moltke. Fixed-income investor-relations
head James Rivett has been promoted to the global role replacing
Mr. Andrews. Deutsche Bank confirmed the contents of the memo.
Mr. Andrews previously oversaw investor relations at Goldman
Sachs Group Inc. and Citigroup Inc. He confirmed his departure
plans Wednesday and said he has no immediate plans to join another
company.
Write to Jenny Strasburg at jenny.strasburg@wsj.com
(END) Dow Jones Newswires
April 18, 2018 11:54 ET (15:54 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Deutsche Bank Aktiengese... (NYSE:DB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Deutsche Bank Aktiengese... (NYSE:DB)
Historical Stock Chart
From Apr 2023 to Apr 2024