Big Changes Said Afoot Over At Deutsche Bank

The New York Post reports that Michael Cohrs, the co-head of Deutsche Bank's corporate & investment banking unit, is thought likely to 'relinquish some of his leadership roles at the firm in a matter of weeks'.

According to the newspaper's sources, Cohrs looks set to step down as co-head of the unit, leaving Anshu Jain in sole charge. Jacques Brand and Stefan Leithner are also likely to step up to succeed Cohrs as co heads of investment banking. They will report into Jain. Some see these expected moves as the culmination of a power struggle to succeed Deutsche's group CEO Josef Ackermann, who currently has a contract in place until 2013 (he extended his last contract in 2009, as the bank failed to agree on a successor).

In the meantime, Bloomberg reports that Ackermann confirmed at the bank's annual shareholders meeting last week that he had been in 'intensive discussions' for some months already on the subject of his replacement, and the smart money thinks that he will leave well before his contract is up. Among the favourites to succeed Ackermann are Jain, Chief Risk Officer Hugo Banziger and Rainer Neske, the head of Deutsche's retail banking franchise.

Finally, The Wall Street Journal reports that Deutsche's shareholders last week voted to approve changes to the bank's compensation system, which include provisions to align long-term executive pay partially on the performance of Deutsche's stock price as compared to a peer group of six. Short-term bonuses will be based on return on equity targets.

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