Deutsche Bank chief executive Josef Ackermann went on trial yesterday for a second time after approving disputed multimillion-euro bonus payments to executives in a 2001 takeover battle at telecoms firm Mannesmann AG.
Ackermann, who helped steer Germany's biggest bank to record profits while cutting costs, has said that he will resign if found guilty.
The bank's board of directors has stood behind him -- as they did in his first trial, which ended in acquittal.
The charges do not relate to the activities of Ackermann at Deutsche Bank. Ackermann did not receive money himself, and has rejected the accusations.
But his style has often drawn criticism in Germany -- the bonuses paid to departing executives at Mannesmann were considered by many as excessive in a business culture that has not caught up with the big-money pay practices prevalent in US and British banking.
Deutsche Bank at one point drew heavy criticism for announcing a healthy profit together with hefty job cuts.
In 2004, Ackermann -- a former member of Mannesmann's board -- and five others were acquitted of breach of trust over allegations that they illegally engineered payments to executives at Mannesmann after its takeover by rival Vodafone Group PLC. The US$226 billion deal was the largest corporate merger ever at the time.
In all, bonuses and retirement packages of US$97 million to executives were approved. Prosecutors have argued that a special severance payment of more than US$18.9 million to former Mannesmann chief executive Klaus Esser was not in the best interest of the company.
After prosecutors appealed, the case was revived last December when Germany's Federal Court of Justice ordered a retrial.
The protracted legal proceed-ings have been a distraction as the bank strives to become more international in its reach while shoring up its position at home.
In Germany, awards of the size made to the Mannesmann managers are uncommon and top executives' compensation is generally more modest than in the US.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS