Germany's top banker on trial over giant bonuses

Germany’s most powerful banker went on trial today accused of improperly approving large executive payments during a high-stakes takeover deal that has focused the nation’s attention on boardroom behaviour.

Deutsche Bank chief executive Josef Ackermann and five are charged with authorising bonuses and retirement packages totalling €55m to executives of German mobile phone company Mannesmann during its takeover by the British telecom giant Vodafone.

The payments, approved after Mannesmann dropped its opposition to the Vodafone takeover, are considered astronomical in Germany, where top executives rarely earn above €1.8m annually.

Ackermann’s defence argues there was nothing illegal about the payments and that they were consistent with the result – Mannesmann shares jumped 136% after the takeover – and international business practices.

Swiss-born Ackermann appeared relaxed and energetic, talking with other defendants in the Dusseldorf court before the trial began.

He said: “This is the only country where those who succeed in achieving a good price are dragged before court for it,” he said.

Although he received no money himself, Ackermann faces up to 10 years in prison if convicted.

Deutsche Bank has strongly backed its leader, hiring two of Germany’s top lawyers to defend him.

Ackermann has continued his duties as the bank’s chief and will do so through the trial, conducting business from an office near the court on trial dates.