Less than three years after taking over Deutsche Bank, John Cryan is leaving the German lender. The company’s stock has fallen more than 50% during his time as CEO, buffeted by billion-euro legal penalties that pre-dated his tenure, declining revenues, and stubbornly high costs.
|Date||Event||Market cap (€ billion)|
|4/8/18||Christian Sewing appointed CEO||24.4|
|3/28/18||Cryan says in memo to employees: “I am absolutely committed to serving our bank“||23.1|
|2/2/18||Misses cost goals, revenue declines||28.6|
|10/26/17||Corporate and institutional division seen as weaker than peers, following earnings report||29.8|
|1/17/17||Agrees to pay $7.2 billion to settle US mortgage probe||24.1|
|9/15/16||US authorities ask bank to pay $14 billion to resolve mortgage securities probe||17.9|
|6/30/16||IMF says Deutsche Bank poses the greatest risk to the global financial system||16.8|
|5/1/16||Cryan becomes sole CEO||21.9|
|6/7/15||Cryan appointed co-CEO||39.6|
Investors appear optimistic about his successor, Christian Sewing, essentially a Deutsche Bank lifer who started as an apprentice and most recently ran the bank’s private and commercial banking arm. The bank’s market capitalization has jumped by some €1 billion ($1.2 billion) in trading today, the first session after the succession news was announced.
Cryan, meanwhile, will be remembered in Deutsche Bank history as an unusually forthright executive. Early in his tenure, he questioned the sacrosanct notion that the banking industry’s generous bonuses motivate people to work harder: “I’ve never been able to understand the way additional excess riches drive people to behave differently,” he said. Last year, in announcing impending job cuts, he noted that “we have people behaving like robots doing mechanical things, tomorrow we’re going to have robots behaving like people.”
Cryan’s relatively short time at the top of Deutsche Bank may not be fondly remembered by shareholders, but the straight-talking Brit will be missed by journalists, at least.