Deutsche Bank says Ross will head U.S. operations

Newman, well-paid CEO of Bankers Trust, isn't mentioned

Banking

May 27, 1999|By BLOOMBERG NEWS

NEW YORK -- Deutsche Bank AG said yesterday that John A. Ross will become chief executive of its business in the Americas after its $10.1 billion purchase of Bankers Trust Corp. is completed next month.

The announcement did not mention Bankers Trust Chief Executive Officer Frank Newman, who, according to his employment agreement, will be paid at least $55 million over the next five years to be chairman and chief executive of New York-based Bankers Trust and co-head of Deutsche Bank's global commercial and investment bank.

Deutsche said in a press release that Ross would become chief executive "of the combined operations of Deutsche Bank and Bankers Trust in the Americas." Ross will report to the other co-head of the global investment banking arm, Josef Ackermann, and Ronaldo Schmitz, a member of the Deutsche Bank board with responsibility for the Americas.

Deutsche Bank spokesmen would not elaborate on the release, which was issued from the bank's headquarters in Frankfurt, Germany. Newman declined to comment.

Ross, 54, has been chief executive of Deutsche Bank's Asia-Pacific group. He replaces Barry Allardice, who was Deutsche Bank's chief executive for the Americas.

Newman, 57, has a five-year contract with Deutsche Bank that says he will be nominated to the board, is to be based in New York and will be paid at least $11 million a year.

Among his titles is "chairman and chief executive officer of Bankers Trust Corp. and Bankers Trust Co. or their successors."

Deutsche Bank expects to complete the purchase no earlier than June 4.

Pub Date: 5/27/99

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