A hard year ahead

Jan 5th 2006 | FRANKFURT
From The Economist print edition

Performing day by day, or even quarter by quarter, is not enough

NORMALLY, a chief executive with such a record could laugh off calls for his resignation. He has led the company since its restructuring in 2002; it is producing record results; and there is no obvious successor. However, following an appeal court ruling last month calls for the head of Josef Ackermann, who runs Deutsche Bank, Germany's largest bank, are no joking matter. With five other men, he must face a retrial over his supervision of Mannesmann, a telecommunications company taken over by Britain's Vodafone nearly six years ago. Mr Ackermann plans to stay put. Officially he has the support of Deutsche Bank's supervisory board.

Mr Ackermann was on Mannesmann's supervisory board when it awarded bonuses and other benefits worth €57m (then $55m) to top officials in the wake of the company's €180 billion takeover by Vodafone in February 2000. Six Mannesmann officials, including Mr Ackermann, were tried over these payments. In July 2004 a Dusseldorf court acquitted them, though recognising a breach of German securities law. On December 21st, however, an appeal court in Karlsruhe, referring to the bonuses as “voluntary” gifts that brought the company no advantage, ruled that there should be a retrial.

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