Deutsche Bank Mulls Shrinking Executive Board in Cost Drive

Deutsche Bank AG is considering shrinking its executive board as the German lender steps up efforts to reduce expenses.

(Bloomberg) — Deutsche Bank AG is considering shrinking its executive board as the German lender steps up efforts to reduce expenses.

The Frankfurt-based bank may use the impending departure of President Karl von Rohr — who leads the private bank and is one of two presidents of the firm — as an opportunity to reshuffle some responsibilities of its top management body and reduce the number of members to nine, from the current ten, according to people familiar with the matter.

Such a decision would support a renewed effort to rein in expenses that will include a new round of job cuts across the bank, they said. Deutsche Bank is also discussing more ambitious cost goals, the people said, asking not to be named discussing private information.

Chief Executive Officer Christian Sewing said in February that he wants to step up savings beyond the current target of €2 billion by 2025, including through job cuts and a reduction in office space. Sewing has benefited from a trading rally and rising interest rates, but he’s struggled to meet his cost-cutting goals as rampant inflation and competition for talent drove up expenses.

Deutsche Bank is likely to decide on the management board reduction next week and could discuss some details of the savings plan when it reports earnings on April 27, they said.

A smaller board is a potential outcome even if the lender decides to appoint a successor to von Rohr, who has told the company that he will leave when his contract runs out at the end of October.

A spokesman for Deutsche Bank declined to comment. Handelsblatt reported earlier that the lender wants to decide on von Rohr’s succession this month.

His decision to step down was announced Tuesday, though Deutsche Bank didn’t say who will succeed him. He will also relinquish his role as chairman of the supervisory board of Deutsche Bank’s investment arm DWS Group.

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