Commerzbank undergoes leadership shift during a challenging period
It's been revealed that Manfred Knof won't be continuing as Commerzbank's CEO past his contract end in late 2025, but things are escalating quickly. Unicredit's takeover intentions are putting pressure on the bank, and now it appears that changes are happening sooner than expected.
Bettina Orlopp, the bank's current Chief Financial Officer and Deputy CEO, is set to step into the CEO role. She'll be taking the reins once Knof leaves, according to an announcement from Frankfurt. Furthermore, Michael Kotzbauer, the head of corporate customers, has been designated as the new deputy CEO.
The Frankfurt-based DAX company surprisingly announced in September that Knof would fulfill his contract but not extend it, which is set to conclude at the end of 2025. He's led the bank since 2021, overseeing its restructuring efforts. However, with Unicredit making moves on Commerzbank, major shareholders like Deka fund management are pushing for a swift resolution to the CEO question. In this critical juncture, Commerzbank needs clarity.
Orlopp has long been seen as a leading contender to succeed Knof. The 54-year-old has been with Commerzbank since 2014 and has served on the board since 2017. Prior to joining Commerzbank, she was a partner at the consulting firm McKinsey. In describing herself, she once referred to herself as a "loyal soul," having worked for only two employers throughout her career.
Unicredit recently made an unexpected large-scale investment in Commerzbank. Most recently, the Italians secured the option to boost their stake from 9 to 21 percent using financial instruments. This would make Unicredit by far the largest shareholder, surpassing the state, which holds around 12 percent. Concurrently, Unicredit applied for regulatory approval to raise its stake up to 29.9 percent, making a formal takeover offer for Germany's second-largest private bank more likely.
The Frankfurt-based Commission expressed concern over the escalating situation due to Unicredit's takeover intentions, urging Commerzbank for a swift resolution in the CEO position. The Commission acknowledged that Bettina Orlopp's appointment as the new CEO, following Knof's departure, could bring stability during this critical period.
