Cutting Expensive Grape Juice From Deutsche Bank Board Meetings A Bridge Too Far For John Cryan

You didn't get a bonus this year but the $$$ grape juice is here to stay.
Author:
Updated:
Original:

Since John Cryan took over as Deutsche Bank CEO in June 2015, his most pressing issue has been to cut costs like no bank has cut costs before. Naturally, this has involved firing thousands of employees but also: slashing bonuses, in some cases, to zero, which he thinks was still to high; nixing Deutsche's NetJets contract; "discontinuing airport VIP services that for years had whisked executives through security checks and onto the tarmac in chauffeur-driven cars"; scrutinizing client lunch bills; and vastly cutting back on chauffeured Mercedes S-class sedans, a move so harsh it'd make a grown executive weep. But get rid of the fancy grape juice board members have grown accustomed to and would feel lost without? That's something not even Cryan could do.

...it was up to Mr. Cryan to pick up the pieces. It was his unenviable responsibility to lay off 9,000 employees, close shop in 10 countries, slash bonuses and erect more robust controls against illegal activities. The bank slammed the brakes on spending so hard that Chief Financial Officer Marcus Schenck recently wanted to forbid the purchase of expensive grape juice from executive board meetings. But that was too much for even his hyper cost-sensitive boss.

Riding With The King [Handelsblatt via Matt Levine]

Related: It’s Almost As Though Deutsche Bank’s CEO Doesn’t Care That Chauffeured Mercedes Sedans Are A Lifestyle His Employees Have Grown Accustomed To; Deutshe Bank CEO Isn’t Gonna Apologize For Slashing Bonuses To Zero, Which He Still Thinks Is Too High

Related