German government takes aim at ex-Deutsche Bank boss in bonus row

Deutsche Bank - External

German Chancellor Angela Merkel’s coalition is taking aim at former Deutsche Bank CEO Josef Ackermann in a dispute over bonuses, distancing her government from the bank’s legacy in an election year.

Bloomberg News reports that as the bank faces a U.S. government probe tied to residential mortgage-backed securities, the criticism in Berlin is a sign of encouragement for changes at Deutsche Bank being pursued by CEO John Cryan, including job cuts and a shift toward core banking tasks.

German policy makers associate the old business model and its perceived excesses with Ackermann, 68, who stepped down in 2012 and this month questioned whether executives should forfeit bonuses.

“It isn’t a happy situation when someone causes damage to a bank and then wants to be rewarded on top of that,” Ralph Brinkhaus, a deputy caucus head of Merkel’s Christian Democrat-led bloc in parliament, said in an interview. Bonuses “are performance-based compensation” and “should be clawed back if someone performed badly,” said Carsten Schneider, a finance lawmaker for the Social Democrats, Merkel’s junior coalition partner.

To access the complete Bloomberg News article hit the link below:

Merkel Coalition Targets Deutsche Bank’s Ex-CEO in Bonus Feud

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