Deutsche Bank Chairman Paul Achleitner warned in a speech in Frankfurt Wednesday that German companies could not comply with both international regulations and local securities laws.
Germany has a two-tier advisory system, with the board fully responsible for day-to-day operations and corporate strategy. The management is not ordered by the Board of Auditors, which has the right to appoint, supervise and advise the management.
“”[International] Regulators and watchdogs [a German] The chairman emphasizes that it is their sole duty to monitor the control system of the company, âAchleitner said at the corporate governance conference. “Instead, they expect detailed checks outside the scope of German securities law.”
Achleitner has chaired Germany since 2012 and will step down as lender in May next year, at the end of his second five-year term. Deutsche has yet to name a successor.
Under his supervision, the bank’s share price accumulated a loss of 12 billion euros, raised 19.5 billion euros in new capital and paid out billions of dollars to resolve various allegations of fraud, 70 It fell by almost%.
Over the past two decades, Deutsche Bank has had difficult relationships with foreign regulators, including the US Federal Reserve, and has frequently complained about banking supervision.
Deutsche Bank has been stable since Christian Sewing took over as CEO in 2018 and began a radical restructuring. Earlier this year, the bank Highest quarterly profit Since 2014, stock prices have risen by over 45% in the past 12 months.
In his speech, Achleitner argued that the German supervisory board has become much more professional over the past decade. However, he said the part-time director still lacks the legal authority he has over the US or UK board and struggles to meet the expectations of regulators outside of Germany.
âAt least in the banking sector, not only the chairman but also the individual members of the board of auditors are invited to the conversation. [by regulators]âSaid Achleitner.
“It’s almost useless [in such conversations] To underline Germany’s corporate governance, âhe added, claiming that foreign regulators have held the board of auditors responsible for specific matters, regardless of their actual legal capacity under German law. . Insisted.
Achleitner did not call for the abolition of the two-tier board system in Germany, but proposed some reforms, including their reduction in order to make the supervisory board more effective. Currently, they typically have 20 members, which “makes productive discussions and quick decisions difficult,” he said.
He also called on companies to redouble their efforts to professionalize the supervisory board. âSince the turn of the millennium, we have certainly seen improvements in recruiting. We must rely on them to meet the growing expectations of investors and regulators. “
Couture had to apologize after the bank announced last week, And pulled, A research report accusing German financial regulators and the country’s conservative government of making serious mistakes.
Deutsche Bank chairman warns of conflict between foreign regulators and German governance Deutsche Bank chairman warns of conflict between foreign regulators and German governance