Deutsche Bank to shake up mgmt board in CEO succession

Deutsche Bank plans to reorganise its management board by replacing two senior members before India-born Anshu Jain takes over as the co-CEO of Germany's largest bank at the end of May.

A special committee of Deutsche Bank's supervisory board has agreed to a proposal by Jain and his designated co-chairman Juergen Fitschen to terminate the contracts of their management board colleagues Hugo Baenziger and Hermann-Josef Lamberti, media reports said.

The supervisory board is expected to take a decision on the proposed changes at its regular meeting on March 16, according to the reports.

Baenziger, management board member responsible for risk management, was favoured by current chairman Josef Ackermann to succeed him when he retires in May, one year earlier than his contract expires in 2013.

However, the supervisory board in July, last year, appointed Jain, head of Deutsche Bank's highly successful investment banking division based in London and his management board colleague Fitschen for Germany's top banking job.

They were nominated by supervisory board chairman Clemens Boersig. Lamberti was until now in charge of the bank's information technology and personnel divisions.

He will be replaced by head of investment banking in Germany Stephan Leithner, who will also become the head of Deutsche Bank's European operations, the reports said.

Baenziger's responsibilities will be shared by current financial head Stefan Krause and risk management specialist Bill Broeksmit from London, who will join the board, which has been expanded from seven to eight members.

When Jain moves to Frankfurt from his base in London, he will be succeeded as head of the investment banking division by current head of the Asian operations Robert Rankin and Colin Fan, who looked after credit business.

New Chief Operating Officer in the management board will be Henry Ritchotte, who until now carried out this function in the investment banking division, the reports said.