You guys wanna read the least surprising paragraph in the history of financial news?
Deutsche Bank AG executives have discussed the potential departure of investment-banking chief Garth Ritchie, who has come under fire from investors for dismal results since he became the highest-paid senior executive at the embattled lender last year, according to people familiar with the matter.
Well, no schiesse. Putting aside any analysis of Ritchie as an executive or a man [we're incapable of either] one just has to look at the current state of Deutsche Bank's i-banking operation and realize that no chief executive should survive such a smoldering hellscape.
Leadership uncertainty and potential business closures have added to employees’ unease stemming from a record-low share price, regulatory investigations and strategic doubts. The lender relies on its investment bank for more than half of its revenues, but many of the unit’s businesses struggle to cover their costs.
Things are so bad that it's difficult to imagine why Ritchie is even still at Deutsche Bank right now, we can't even fathom what's going over there...
Mr. Ritchie, a former equities trader who also is co-president of the bank, is five months into a new five-year contract ending December 2023. He has told colleagues he wants a payout if he is pressed to leave, some of the people say. That complicates the internal discussions, especially for Chairman Paul Achleitner, who also oversees executive compensation. If the bank fires Mr. Ritchie, he would be eligible for two additional years of his base salary, which last year was €3 million ($3.36 million), plus bonus.
So, essentially, Paul Achleitner has created a situation in which he feels that he can't afford to fire the chief of his failing investment banking unit.
This the Deutsche Bankiest thing we have ever seen.