This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-32820712

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
Deutsche Bank faces shareholder showdown Deutsche Bank responds to shareholder criticism
(about 7 hours later)
Deutsche Bank faces a potential shareholder revolt at its annual general meeting on Thursday. Deutsche Bank encountered anger from its shareholders at its annual general meeting on Thursday.
UK-based Hermes Equity Ownership Services intends to declare a no-confidence vote in the board of the German banking giant. Investors are uneasy about Deutsche's profit growth, mounting regulatory fines, and restructuring plans.
Shareholder advisory group ISS has already recommended that Deutsche investors withhold their backing. Hermes Equity Ownership Services, which holds a stake of almost 5% in Deutsche Bank, has called for the bank to make sweeping changes to its management.
Investors are uneasy about Deutsche's profits growth, mounting regulatory fines, and restructuring plans. "We no longer have confidence in the management board," said Hermes' director Dr Hans-Christoph Hirt.
"We have questions about the unsatisfactory delivery on key targets of their strategy, which has led to very poor performance of their share price," said Hermes' director Dr Hans-Christoph Hirt on the BBC's Today programme. The company's chief executives responded to criticisms and requested more time to change the bank.
'Unsatisfactory delivery'
"We have not delivered, so far, the returns you expect and deserve," said Deutsche Bank's co-chief executive Jürgen Fitschen.
"However, we are convinced: we are moving Deutsche Bank in the right direction. For that reason, we ask for your continued support," he added.
Dr Hirt said in a statement on Wednesday that Hermes would "vote against the so-called discharge of the members of Deutsche Bank's management board."
"We have questions about the unsatisfactory delivery on key targets of their strategy, which has led to very poor performance of their share price," said Hermes' director Dr Hirt on the BBC's Today programme on Thursday.
"We are also concerned about what seems to be limited progress on culture change and dealing with litigation investigations."We are also concerned about what seems to be limited progress on culture change and dealing with litigation investigations.
"Last but not least, we are very concerned about the $2.5bn fine to settle the investigations into the Libor rigging involvement of Deutsche Bank. It's not just the money. The findings of the regulators suggest very serious misconduct. It's something we think the management is responsible for," he added."Last but not least, we are very concerned about the $2.5bn fine to settle the investigations into the Libor rigging involvement of Deutsche Bank. It's not just the money. The findings of the regulators suggest very serious misconduct. It's something we think the management is responsible for," he added.
Hermes holds a stake of just less than 5% in Deutsche Bank. It invests on behalf of clients including 41 pension funds around the world. Hermes is not the only investor to voice disappointment. "Management should step down. The horrendous fines are eating away profits and as a result there's no money left for sensible projects," small-time investor Walter Liehmann told the news agency AFP.
'Strong concerns' Mr Fitschen commented on the Libor fine at Deutsche Bank's annual meeting. "We deeply regret this issue and we're relieved to have settled it," he said.
In a statement on Wednesday Mr Hirt said: "We have previously queried with the bank itself the suitability of Juergen Fitschen and Anshu Jain, the bank's two chief executives, to lead Deutsche's culture change, given their long tenure in key leadership positions including at the investment bank." Restructure and reshuffle
He added that Hermes would "vote against the so-called discharge of the members of Deutsche Bank's management board. With this vote we formally express our strong concerns about a range of issues and our lack of confidence in the management board." "In two areas, we have not delivered as we intended to," said co-chief executive Anshu Jain.
Under German corporate governance rules, a vote to "discharge" a board is a vote of confidence. Voting against discharge is seen as a strong criticism. "First, resolving legacy litigation matters has taken longer, and been very costly...Second, cost-efficiency remains a challenge," he said.
On 8 May, ISS, which acts as a consultant to big investors and hedge funds, advised investors not to support the board. ISS was particularly concerned about the size fines being imposed on Deutsche.
Last month, Deutsche unveiled the next phase of its plan to boost profitability, Strategy 2020, but shareholders, including Hermes, have said there is not enough detail.Last month, Deutsche unveiled the next phase of its plan to boost profitability, Strategy 2020, but shareholders, including Hermes, have said there is not enough detail.
Late on Wednesday the bank reshuffled its board. Co-chief executive Anshu Jain will now head up the bank's restructuring plan. Late on Wednesday the bank reshuffled its board. Co-chief executive Anshu Jain will now head up the bank's restructuring plan. Hermes dismissed the reshuffle as insufficient.
Deutsche's co-chief executives have recently said that they have no plans to step down.
A Deutsche spokesman declined to comment.A Deutsche spokesman declined to comment.