- Garth Ritchie, the South African-born head of Deutsche Bank's global investment banking unit, was the first casualty in the bank's massive restructuring.
- Deutsche Bank is planning to cut 18,000 jobs by 2022 to improve profitability.
- Ritchie was paid over €8.6 million a year, and set to receive a severance package of €11.2 million.
- For more stories, go to Business Insider SA.
South African born Garth Ritchie, who was paid over €8.6 million (R140 million) a year for his job as global head of investment banking at Deutsche Bank, was one of the first casualties in the embattled organisation's massive restructuring.
The German bank, with operations across the globe including South Africa, on Sunday announced that it plans to cut 18,000 jobs by 2022 to improve profitability.
The job cuts would reduce its workforce to 74,000 – which means that more than 1 in 6 workers at the bank will be out of a job in the next few years – and strip €6 billion in costs.
A spokesperson told Business Insider South Africa that it is still too early to comment on potential job losses at its local operations, based in Johannesburg.
The 51-year-old Ritchie served as head of Deutsche Bank's corporate and investment bank since 2016, and spent 23 years at the bank.
Prior to joining Deutsche Bank, Ritchie work at First National Bank (FNB) in South Africa. He graduated from the University of Port Elizabeth with a BCom degree.
During his tenure, profits at Deutsche's corporate and investment bank declined from €2 billion to €530 million in 2018.
Deutsche Bank said Ritchie was leaving "by mutual consent".
Ritchie, whose contract was extended for another four years in 2018, was the bank’s best-paid board member in 2018, Reuters reported. His remuneration had long been a bone of contention among German shareholders in Deutsche.
Bloomberg reported that he received an additional allowance of €250,000 (R4 million) a month to help prepare the bank for Brexit. This did not go down well in Germany. He is set to continue to advise Deutsche Bank on Brexit after leaving the bank, but it is unclear how much he would be paid.
Ritchie is expected to receive the typical severance package for German management board members which is roughly two years’ salary. This equals to roughly €11.2 million, Bloomberg reported. This has also sparked criticism.
Last month, Bloomberg reported that Ritchie was one of 80 Deutsche employees who are suspects in an investigation by German prosecutors into an alleged tax fraud.
"The (cum-ex trades) strategy enabled both sides of a short sale to claim a refund of a dividend tax that was only paid once, costing taxpayers at least 10 billion euros, according to lawmakers," Bloomberg reported.
Deutsche Bank’s supervisory board on Sunday approved CEO Christian Sewing’s large-scale restructuring plan to improve profitability after struggling since the financial crisis of 2008.
The banks is planning on dropping its equity sales and trading unit, and creating a new "corporate bank" to focus on commercial and corporate clients.
The bank also plans to bundle €74 billion of assets into a separate unit to sell off, so freeing up money to pay for the restructuring.
The revamp is expected to cost the bank up to €5 billion.
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