Commerzbank CEO, board took a pay cut in 2018

Commerzbank’s annual profit was more than twice the €341 million earned by Deutsche Bank. (AFP)
Updated 27 March 2019

Commerzbank CEO, board took a pay cut in 2018

  • Commerzbank is 15 percent owned by the German government after a bailout a decade ago
  • Deutsche Bank said last week that they were in talks to merge

FRANKFURT: Commerzbank’s chief executive officer took a 32 percent pay cut in 2018, according to the bank’s annual report on Wednesday, in sharp contrast to hefty pay increases for the top management at Deutsche Bank.
Commerzbank, which is 15 percent owned by the government after a bailout a decade ago, and Deutsche Bank said last week that they were in talks to merge.
Total compensation for Martin Zielke was €1.97 million, down from €2.88 million in 2017, while pay for the management board of the German bank declined 24 percent.
Zielke’s pay compared with €7 million for Deutsche Bank’s chief Christian Sewing.
Deutsche Bank’s management board received total pay, including bonuses, of €55.7 million in 2018, up from €29.8 million a year earlier.
The decrease in management pay at Commerzbank comes despite the bank’s 2018 net profit rising to €865 million from €128 million a year earlier.
Commerzbank’s annual profit was more than twice the €341 million earned by Deutsche Bank.
Deutsche Bank and Commerzbank declined to comment on the pay disparity.


Creditors take action against Al Jaber in decade-long saga

Updated 10 min 55 sec ago

Creditors take action against Al Jaber in decade-long saga

  • The downturn in the Gulf construction sector has triggered a number of corporate restructurings as companies are forced to reschedule debt, raise fresh borrowing or enter insolvency protection

DUBAI: Creditors have started to enforce claims against Abu Dhabi-based Al Jaber Group, in a dispute triggered by a construction downturn in the UAE more than a decade ago.

Al Jaber, a contractor with interests across a range of sectors, has struggled since building up debt in the wake of a UAE real estate crisis and began talks with creditors in 2011.

Abu Dhabi Commercial Bank, which is working as restructuring and security agent, said in a document dated Sept. 21 which was seen by Reuters, that it had instructions from the majority of creditors to proceed with claims against Al Jaber.

A representative for Al Jaber did not immediately respond to a request or comment. ADCB declined to comment.

The move follows delays in restructuring agreements, under which Al Jaber was to appoint a new board and sell companies and assets such as the Shangri-La hotels in Dubai and Abu Dhabi.

In exchange, creditors had agreed to extend the maturity of a 5.9 billion dirhams ($1.61 billion) loan, cut interest rates, and provide additional revolving debt.

The initial enforcement action now being pursued by creditors includes the “acceleration and demand for payment of amounts outstanding” under the previously agreed debt restructuring, a source familiar with the matter said.

Enforcement will also allow creditors to claim against Al Jaber’s chairman under a 4.5 billion dirham loan to the company.

Several UAE companies have sought to extend debt maturities or agree better terms in recent years to avoid defaults, after an oil price crash hit energy services and construction.

The coronavirus crisis has added to the strain and Arabtec Holding, the UAE’s biggest listed contractor, this week will discuss options including dissolution after the pandemic hit projects and led to additional costs.

Meanwhile, Dubai-listed construction firm Drake & Scull is working to reach an agreement with its creditors in an out-of-court process.