Last month, the lender broke off merger talks with Commerzbank AG, leaving investors guessing what’s next in terms of strategy.
Tuesday 21, May 2019
(Bloomberg) --BlackRock, the largest single shareholder of Deutsche Bank, will not vote on the performance of the bank’s management and supervisors at an annual meeting that is shaping up to be one of the season’s most contentious.
BlackRock, the world’s largest investment firm with $6.5 trillion under management, has mandated a specialised company to cast the votes in its stead when Deutsche Bank’s shareholders convene in Frankfurt this week.
The decision was made for reasons having to do with regulation.
BlackRock stated that it has appointed an independent fiduciary to vote proxies where it is required by regulation or where there are actual or perceived conflicts of interest.
The Deutsche Bank meeting comes after several large European companies saw investors revolt against management.
ING Groep’s boards failed to get investor backing over the handling of money laundering issues and UBS Group saw an uprising over a $5 billion penalty the bank had to pay for helping clients evade taxes.
Philipp Hildebrand, vice chairman of BlackRock, said, “These meetings are not going to be fun for the boards or the management undoubtedly, lenders must find an answer to the business model problem which has been at the core of European banking.”