Deutsche Bank CEO Christian Sewing supports his plan to reverse the lender's ailing share price by committing to using 15 percent of the net salary on the stock.
This is the first time a Deutsche boss has made a commitment to invest part of their salary regularly in shares of Germany's largest bank. Mr Sewing, who has worked at the bank for almost his entire career after joining as an apprentice, received just over € 7 million last year, including a base salary of € 3.3 million.
The pledge from Mr Sewing comes a few months after he announced a drastic restructuring of the bank, including cutting 1
Mr Sewing will buy part of the shares equivalent to 15 percent of his net salary by the end of 2022, according to a filing from the German lender on Monday. This will result in a total investment of € 850,000 over the period, according to a spokesperson for the bank. Mr Sewing has already spent € 44,058 on buying 6,563 shares in July and August.
The announcement follows a similar move from Paul Achleitner, Deutsche & # 39; s chairman, who invested € 1 million in the bank's shares early last month.
Deutsche shares, which have risen slightly since hitting record lows in the middle of last month, were modest on Monday. However, they are still down one third over the past year and have fallen more than 80 percent over the past decade, making them one of the worst performers in the banking sector.
Mr Sewing owned 73,237 shares in Deutsche's annual report on February 15, and the planned monthly purchases would increase his shareholding by more than three-quarters of the current share price.
It will still be far below many of his rivals in US banks. On average, the heads of the five US global banks owned $ 222 million at the end of last year, more than 15 times the average of the top half-thousand world banks in Europe, according to data from executive Equilar paid specialists.
When he first revealed plans to invest more of his money in stocks in July, Sewing said, “I personally put my money where my mouth is. I want to lead by example. ”
The restructuring Mr Sewing unveiled in early July signaled that Deutsche is abandoning its long-standing attempt to break into the top tier of global investment banking and giving the group back to its roots bank for large companies in Germany and beyond.
But with the German economy on the brink of a recession, and the European Central Bank wanting to put more pressure on banks' lending margins by cutting interest rates again next month, Sewing said his work has still been cut to turn the group.