Deutsche Bank's Josef Ackermann Faces Criticism Over Postbank Affair

At the annual shareholder meeting of Deutsche Bank, Josef Ackermann, the bank's chief executive, faced criticism from dissident investors over the bank's handling of the Postbank initial public offering (IPO). Although large investors were largely satisfied with the 15% rise in dividend and a promise to focus on organic growth, smaller shareholders and analysts expressed concerns over the bank's reputation and leadership. The Postbank affair, which involved a botched interest in buying the bank and a leaked internal memo suggesting a lower valuation, has led to reputational damage and ongoing legal action against Ackermann and the bank's supervisory board chairman, Rolf Breuer.

Key Takeaways:

• Dissident investors criticized Deutsche Bank's leadership over the Postbank affair, citing a lack of transparency and a failure to show a united front.
• The bank's executive pay, with Ackermann's remuneration increasing by 60% to €11m (US$13m) last year, was also criticized as inflationary.
• Ongoing legal action against Ackermann and Breuer, including the Mannesmann trial and the collapse of the Kirch media empire, further damaged the bank's reputation.
• The bank refused to disclose details of the Postbank deal, citing client confidentiality.
• Analysts noted that Deutsche Bank's delicate political position, with the German chancellor, Gerhard Schroder, pushing for the creation of national champions, made the bank's response to criticism particularly important.
• The bank's promise to focus on organic growth and increase dividend payouts may not have fully addressed the concerns of smaller shareholders.

Statistics:

• Postbank's IPO valuation was reportedly up to 25% lower than the €6bn parent Deutsche Post had been hoping for.
• Deutsche Bank's executive pay rose by 60% to €11m (US$13m) last year.
• The bank's dividend payout increased by 15%.
• As of the shareholder meeting, 23 dissident investors expressed concerns over the Postbank affair.

Sources:

• "Deutsche Bank Shareholders Vent Frustration" by Patrick Jenkins, published in the Financial Times on an unspecified date.
• Other sources not explicitly mentioned in the original text.