Global bank Deutsche Bank(DB) - Get Report on Sunday announced a management shakeup and major restructuring that will split the company in half. The German bank will also eliminate its group executive committee as part of the plan it said would fundamentally change its group and leadership structure.
The anticipated changes come after an extraordinary meeting in Frankfurt, where the bank's supervisory board said in a statement it would split off its investment banking business in order to meet client demands and regulatory requirements.
"We want to create a better controlled, lower cost, and more focused bank that delivers long-term value to shareholders and great experiences to clients. The new structure and management team are essential to getting this done. I am delighted to welcome six new members to the Management Board to form the team that together will build a better Deutsche Bank," said John Cryan, Co-Chief Executive Officer of Deutsche Bank, in the statement.
Among those departing are Colin Fan, currently Co-Head of Deutsche Bank's Corporate Banking and Securities division, who will resign effective Monday. Garth Ritchie, currently head of Deutche Bank's equities division, will succeed Fan as of January 1 to helm global markets on the management board.
Former CFO Stefan Krause, a long-term management board member with responsibility for global transaction banking and the non-core operations unit, will resign effective October 31.
Henry Ritchotte, currently Chief Operating Officer, will leave the management board at year end and set up a new digital bank for Deutsche Bank. The management board will communicate further details about this project at a later point in time.
Michele Faissola, currently head of Deutsche Asset & Wealth Management, will leave the Bank after a transition period.
Quintin Price, most recently global executive committee member and head of alpha strategies at BlackRock, will take on management board responsibility for Deutsche Asset Management, effective January 1.
Separately, Kim Hammonds, currently Global Chief Information Officer and Co-Head of Group Technology & Operations at Deutsche Bank and formerly Chief Information Officer of Boeing, will become Chief Operating Officer.
Hammonds will oversee the re-engineering of the Bank's information technology systems and operations. To acquire the relevant experience in credit assessment in accordance with the German Banking Act (KWG), Hammonds will start her role as Senior Group Director at the beginning of next year. She is expected to join the management board in no later than one year.
Deutsche Bank's Corporate Banking & Securities business division is a main focus of the organizational restructuring and will be split into two business divisions. Effective January 1, a business division called Corporate & Investment Banking will be created by combining the Corporate Finance business in CB&S and Global Transaction Banking.
CB&S's sales and trading activities will be combined in a newly-created business division called Global Markets and the name "CB&S" will cease to exist.
Additional changes will affect Deutsche Asset & Wealth Management. High net worth clients will be served by Private Wealth Management which will be run as an independent business unit within the Private & Business Clients business division. Deutsche Asset Management will become a stand-alone business division and focus exclusively on institutional clients and the funds business, according to the statement.
Together with the organizational restructuring there will be a broad-based change of key management roles, Deutsche Bank said.
The Group Executive Committee (GEC) will be abolished, as will ten of the current 16 Management Board committees. Effective January 1, all four core business divisions will be represented directly on the management board. A ten-person management board will be supplemented by four "Senior Group Directors."
Deutsche Bank did not immediately respond to emails or calls for comment.