Deutsche Bank’s approach to legal risk and compliance has improved. (File Photo)
Deutsche Bank AG’s next challenge after the breakdown of merger talks with Commerzbank AG may be its own angry shareholders.
A decision not to back the board is perhaps the strongest sign of discontent shareholders can send to the company’s leadership and it’s relatively rare for shareholder proxy firms to recommend that action. Deutsche Bank’s stock has hovered near a record low for the past several months amid investor doubt the lender will eke out more than a tiny profit any time soon after talks with Commerzbank failed.
Deutsche Bank’s approach to legal risk and compliance has improved, ISS said. Still, the adviser cited concerns that investigations started in the past year may raise questions about whether the bank needs to undertake further work to ensure effective internal checks.
Glass Lewis also referred to last year’s search for a new CEO and executive compensation in its report, as well as the bank’s struggle to turn around its business.