Deutsche Bank asks shareholders to approve supervisory board compensation increase

Deutsche Bank AG is on track to become a "European champion” of lenders, the chairman of the supervisory board told shareholders at the bank's general meeting yesterday, asking them to approve a significant increase in compensation for board members, Reuters and DPA reported, according to Agerpres.

Shareholders at Germany's largest banking group met face-to-face for the first time since the start of the pandemic in 2020. The meeting in Frankfurt was also accompanied by a protest by environmental activists, who accuse the bank of helping to finance the fossil fuel industry.

Supervisory Board Chairman Alexander Wynaendts said Deutsche Bank had massive potential to perform even better.

"Metaphorically speaking, we have reached the base of operations. From here on, we can start our ascent to the top of the European banking industry. This is exactly what is reflected in our ambition to become the European champion,” Wynaendts told shareholders.

A Dutch national, Wynaendts has been chairing the Supervisory Board for four years and is aiming to extend his term.

He asked shareholders for the green light for a proposed increase in compensation for Supervisory Board members, arguing that the current level is "no longer competitive.”

The annual fixed base remuneration of Supervisory Board members would increase from 300,000 euros ($348,000) to 350,000 euros ($406,000). The chairman would reach 1.15 million euros, from the current level of 950,000 euros.

• Increase proposal criticized by shareholders

But the proposal was criticized by shareholders. Wynaendts, already the highest-paid chairman of the Supervisory Board in Germany, will receive a total of 1.4 million euros under the new plans - including compensation for chairing Supervisory Board committees.

His deputy will receive 550,000 euros, an increase of 75,000 euros from the current level.

Deutsche Bank investors have called for cost control. "What matters now is strict cost discipline. Those who control costs reduce their dependence on the macroeconomic environment," said Alexandra Annecke, portfolio manager at Union Investment.

Andreas Thomae of Deka Investment has called on management to improve efficiency. "Growth is important, but profitability is even more important," Thomae explained.

Both said they would vote against the increase in compensation for the chairman of the Supervisory Board.