It seems that Deutsche Bank do care about reputational damage. Yesterday, Josef Ackerman, head of the Bank had his contract renewed for another three years, in order to avoid the ‘reputational damage’ of an open recruitment process.
Speaking to the Financial Times Ackerman said: “In these tough times we didn’t want any more reputational damage (to candidates) through speculation…..Let’s say that if it were one person (who becomes CEO) another would be unhappy. That would be something we didn’t want to make into an issue during a financial crisis” Mr. Ackerman said.
By that rationale, we should have company dictatorships and government dictatorships. After all, if one party say, were to be elected, that would make another unhappy. And at times of crisis, we would not want that, would we?
Oh, and by the way, Deutshce Bank’s results in the quarter in which they hammered a small Russian micro-finance organisation ‘beat expectations’. “Pre-tax return on equity was 25 per cent” the bank said, meeting its pre-crisis target, and flouting the condemnation of Bishop Huber. “Good fixed-income trading in its corporate and investment bank division saw net revenues rise to €4.9bn compared with €1.5bn in the first quarter of 2008.”