Union Investment plans to vote against the proposed reform of the supervisory board compensation at Deutsche Bank during the bank’s upcoming General Meeting. Fund manager Alexandra Annecke conveyed this stance to the “Handelsblatt”.
The background for the vote is a planned amendment to the bank’s articles of association. If passed, the reform would raise the compensation paid to supervisory board members. Specifically, it would increase the basic remuneration while also eliminating existing rules that currently limit extra payments made for chairing supervisory board committees.
Annecke stated that her primary concern is the proposed removal of limitations on the compensation for committee chairpersons. While she finds the increase in basic pay acceptable-as it has not been raised in a considerable time-she argues that the complete abolition of the cap on committee compensation is grossly excessive and “goes too far”.
Deutsche Bank defended the necessity of the reform by citing rationale included with the meeting invitation in April. The bank argues that the current compensation structure is not internationally competitive. Its justification emphasizes the complexity of the institution and the need for supervisory board members who possess high levels of expertise. Furthermore, the bank points out the high time commitment required for the mandate and the additional effort involved in leading various committees.
Ultimately, the bank intends to formalize the compensation increases through an amendment to its articles of association. Such changes require a qualified majority at the General Meeting, needing the approval of three-quarters of the capital represented.