NEW YORK (TheStreet) -- Deutsche Bank's (DB) stock surged on Monday as an investment adviser applauded the appointment of a former UBS executive to succeed the two co-CEOs who resigned amid investor complaints and a string of regulatory fines.
John Cryan, the finance chief who helped Switzerland's UBS navigate the financial crisis and its aftermath was named CEO on Sunday after Jurgen Fitschen and Anshu Jain decided to leave their posts early.
Fitschen, 66, and Jain, 52, were contracted to lead the bank through March 2017 but offered their resignations amid investor dissatisfaction with the bank's performance. The Frankfurt-based company's earnings last year were 74% lower than before the financial crisis, and Deutsche agreed to pay $2.5 billion in April to settle claims that employees helped rig a benchmark interest rate.
"It had become increasingly apparent in recent months that refreshment at the top of the management board was necessary in order to regain trust of investors and other stakeholders," Hans Christoph-Hirt, director of London-based advisory firm Hermes Investment Management, said in a statement Monday. Hermes was among shareholders who signaled a lack of confidence in management at the bank's annual meeting in May and had questioned, specifically, the leadership of Jain and Fitschen.
Hirt said Monday that the firm welcomed the departure of the two executives, "as it facilitates the refreshment of the management board which, in our view, is necessary," as well as the appointment of Cryan.
Deutsche Bank rose 6% to $32.48 in New York on Monday morning, the highest intraday price since May 21.