Financial

Travis Perkins and Polymetal to lose out in FTSE 100 reshuffle

Builders’ merchant Travis Perkins and mining company Polymetal face relegation from the FTSE 100 after their recent performances were hit by political events. The share price of Travis Perkins has dropped 29 per cent since the UK voted to leave the EU in June, as economic uncertainty has sparked concerns among some investors about the […]

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Economy

Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Financial

Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Capital Markets, Financial

BGC Partners eyes new platform to trade US Treasuries

BGC Partners plans to launch a new platform to trade US Treasuries early next year, in a bid to return to a market in the middle of evolution, according to people familiar with the plans.  The company, spun out of Howard Lutnick’s Cantor Fitzgerald in 2004, sold eSpeed, the second-largest interdealer platform for trading Treasuries, […]

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Banks

RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Categorized | Banks

Breuer to pay D Bank €3.2m over Kirch


Posted on March 31, 2016

©Bloomberg

Rolf Breuer, former chief executive of Deutsche Bank

Rolf Breuer, Deutsche Bank’s former chief executive, has agreed to pay his previous employer €3.2m over an interview he gave in 2002 which triggered a costly legal dispute with the estate of the media tycoon, Leo Kirch.

Two years ago, Deutsche Bank paid €928m to the heirs of Mr Kirch, who died in 2011, to settle a 12-year legal battle over the bank’s alleged role in the collapse of his media empire in Germany.

    Mr Kirch had long claimed that Deutsche Bank was in part responsible for his media group’s demise after Mr Breuer questioned the company’s financial health in a television interview with Bloomberg in 2002. Deutsche Bank always denied the allegations.

    In documents released on Thursday, Deutsche Bank spelt out the details of proposed settlements with Mr Breuer and a group of insurers that covered the bank’s top staff. The settlements must be approved by shareholders at the bank’s annual meeting on May 19.

    Deutsche Bank said that it had sought damages from Mr Breuer in relation to his interview with Bloomberg, but that he rejected the bank’s claims and held that he “did not breach his duties as management board spokesman, nor cause compensable damages as a result”.

    To resolve the dispute, Mr Breuer will pay the bank €3.2m “without precedent or acknowledgment of a legal duty due to or in connection with the Bloomberg interview”. In exchange, Deutsche Bank will drop its claims against Mr Breuer. A lawyer for Mr Breuer declined to comment.

    Deutsche Bank will also receive a net sum of €90.1m from a group of insurers that provided so-called directors and officers coverage to the German bank in the year of Mr Breuer’s interview.

    Deutsche Bank’s management and supervisory board told shareholders that a settlement would be better than seeking recourse through the courts, given the uncertainty of how such a process would end, as well as the associated costs and reputational risks.

    In a batch of documents released ahead of its shareholder meeting, Deutsche Bank also spelt out details of its new pay structure for management board members, which came into force at the beginning of this year.

    Under the new system, in addition to a basic salary and bonuses linked to the bank’s and their own performance, divisional heads will also be eligible for a bonus linked to their division’s performance.

    Deutsche said that the maximum its co-chief executive, John Cryan, could theoretically receive under this system this year would be €12.5m, while Jeff Urwin, head of Deutsche Bank’s corporate and investment bank, could earn €13.2m.

    However, as in the previous two years, Deutsche Bank will cap the amount that individual board members can earn at €9.85m. Last year, Mr Cryan, who succeeded Anshu Jain as co-chief executive in July, was paid €2.37m including his salary, pension and fringe benefits. His co-head, Jürgen Fitschen, who is stepping down this year, was paid a total of €4.5m.