Thursday, January 28, 2016

German Bank – German bank against the mercenary mentality – Sü

investment banker take every opportunity to increase their income. German Bank CEO Cyran
 must try to keep the top people – even though he does not pay the most.

Comment by Meike Schreiber

It’s not too long ago, at Deutsche Bank since many had the comforting feeling, under the towers in the Frankfurt Taunusanlage bubbled a source of money. One that provides all the time and never runs dry. It is not long ago that the self-confidence of the German bankers had worn them to be among the best in the industry money. Also known as the self-image a little later got the first crack when billions punishment billion penalty followed, for many crooked businesses in investment banking, for fraud even to the customer, bounced the from many in the bank.

In this respect harms it not at all, that is no longer quite so new German Bank CEO John Cryan this self-perception initially underwent a harsh reality check. On criticism he has not saved, at the very beginning of his tenure: the bank had not a strategy problem, but a problem of implementation, a lousy IT to high costs and an opaque culture of responsibility. But reached its peak, the self-criticism, when he noticed a lump sum in the autumn, bankers earned too much. Quite generally.

While this message was mainly to shareholders who are almost accustomed to that led by the investment bankers splurged billion high bonuses, but also caused with its shops billions penalties. And they now have to forego dividend two years. From the decline of the share price to mention

German Bank CEO John Cryan is asking shareholders to a lot of patience

The new CEO may only limited spread optimism: employees and shareholders of Deutsche Bank need the renovation of the Institute in his opinion, a lot of patience.

(Video: Reuters )

In the bank but Cryans solved remarks a small storm of protest from; he was but even part of the system, have completed its wealth creation and therefore speak well. So it was now inevitable for the morale of the beleaguered team, that the Executive Board – as already Anshu Jain and Jürgen Fitschen in 2012 and 2008 under Josef Ackermann before him – no need for a bonus at least for the 2015th . Especially as the fixed remuneration is sufficient of several million euros to make ends meet

Clearly, however, would come over this message, would Cryans team not – as he himself said – at the suggestion of the Supervisory Board, but willingly to the Extra premium waived. Finally, now is the much more important for the Bank, because not only symbolic in your office, on how much bonus, employees must refrain. On this point, however, did not want to specify Cryan. Decided that is in a few weeks. Because in any case the matter is tricky: If the bonus fund will actually cut only about 30 percent as rumors say from the bank a few weeks ago, that would be from the shareholders’ perspective probably far too little

. Cryan has to keep the best employees, even though he does not pay most

At the same time, however, can not make too hard Cryan cuts despite the billions in losses. Because especially in such important for banking investment banking those mercenary mentality is deeply rooted in these circles it comes to move on to maximize the income constantly. Moreover, these bankers take every opportunity to enter the growing shadow banking sector to a hedge fund or in the private equity industry. There is less regulated and more deserving. And probably will use this blackmail potential, many employees of Deutsche Bank. But if the bank really wants to be the European answer to the Wall Street banks, the first stop so for Europe’s companies, then they will want to bind professionals per se and also want to attract new ones.

Cryan must it succeed now, to keep the best employees, even though he can not offer the best conditions. For this he needs the old esprit de corps of Deutsche Bank revive, who has not based solely on the paycheck, but rather based on the self-image, with great intellect is best for the private, but be able to get especially corporate clients. The fate of the bank depends on whether Cryan manages this feat.

John Cryan Invisible

John Cryan forcing Deutsche Bank on a new style. Almost no outward – inward Briton enters tough on. I do not like anyone.


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