Deutsche Bank CEO Christian Sewing must be getting pretty desperate.
Two days after unveiling the grand ‘restructuring’ plan that was supposed to save DB and assuage investors’ concerns about the bank, DB stock is back near its all time lows after sliding for two days. The weakness in the shares suggests that either investors are second-guessing Sewing’s vision, or perhaps they have simply become desensitized to the troubled German lender’s promise.
Regardless of what’s driving it, the selloff has prompted Sewing to step in. As a gesture of his commitment to turning Deutsche around, Sewing pledged on Tuesday to invest 25% of his salary in DB stock – effectively pulling a ‘Musk’ (buying to restore confidence and calm a selloff), albeit on a much smaller scale.
Unsurprisingly, the gesture had little impact on DB shares, which continued to trade lower (though they were off their lows of the session).
Maybe markets would feel better if Sewing promised to take 100% of his compensation in stock.