Professional Documents
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PROFILE
VAULT EMPLOYER PROFILE:
DEUTSCHE
BANK
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ISBN 1–58131–226-1
INTRODUCTION 1
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Deutsche Bank at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
THE SCOOP 3
History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
League Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
ORGANIZATION 23
VAULT NEWSWIRE 27
ON THE JOB 45
FINAL ANALYSIS 49
RECOMMENDED READING 51
Deutsche Bank
Introduction
Overview
A German giant with a Swiss leader, Deutsche Bank AG is the world’s second
largest financial institution in terms of total assets, and the world’s third
largest corporate and investment bank in terms of revenue (behind Citigroup
and J.P. Morgan Chase). In early 2001, the company initiated a
reorganization that established three distinct business groups: the Corporate
and Investment Bank Group (CIB), which includes corporate finance, sales
and trading, and transaction banking; the Private Clients and Asset
Management Group (PCAM); and Corporate Investments, which includes the
bank’s venture capital and private equity principal investments.
UPPERS
Headquarters
31 West 52nd Street • Major global presence
New York, NY 10019 • Relaxed culture
Phone: (212) 469-8000
www.db.com DOWNERS
• Bureaucratic due to mergers
DEPARTMENTS • Not a brand name in the U.S.
Corporate and Investment Banking
(Commodities, Corporate Finance, EMPLOYMENT CONTACT
Corporate Trust, Fixed Income,
Foreign Exchange, Global Cash Corporate Finance
Management, Global Equities, Nebal Fahed
Global Securities Services, Global Cfcampus.teamus@db.com
Trade Finance)
Sales, Trading and Research
Corporate Investments
Caryn Blumenfeld
Private Clients and Asset
Stcampus.teamus@db.com
Management
Global Technology and Operations
Jacqueline Murray
THE STATS
Gtopscampus.teamus@db.com
Chairman, Management Board and
Head of Corporate and Investment
Banking: Josef Ackermann
THE BUZZ
Employer Type: Public Company WHAT EMPLOYEES AT OTHER FIRMS ARE SAYING
Ticker Symbol: DB (NYSE)
2001 Revenue: $28.6 billion • “Pretty strong showing lately”
2001 Net Income: $167 million • “Second-tier bank trying to pretend
No. of Employees: 94,780 that it’s first tier”
No. of Offices: 2,300 • “Trying to fit into the U.S. – and
so far so good”
• “Disorganized leadership”
KEY COMPETITORS
• “Too German”
Citigroup • “Family-oriented”
Credit Suisse First Boston • “Ambitious and aggressive”
J.P. Morgan Chase • “Very smart people, impressive”
UBS Warburg
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Deutsche Bank
The Scoop
History
Like most German corporations, Deutsche Bank’s actions during World War
II are a sensitive subject. The company has admitted that it helped finance
the construction of the Auschwitz concentration camp. To its credit, the bank
participated in the $1.25 billion settlement fund offered by Swiss and German
companies to Holocaust victims. And Deutsche Bank mentions unseemly
events such as the 1933-1934 ouster of Jewish board members in the history
section of its corporate web site.
Purchasing power
The company’s growth continued after the war, but it wasn’t until the late
1990s that the firm made the move that placed it among the major
international players. In June 1999, Deutsche Bank acquired Bankers Trust
(BT) for approximately $9 billion. BT had purchased Alex. Brown & Co., a
U.S. investment bank with nearly 200 years of history, two years earlier,
giving Deutsche Bank significant corporate lending and underwriting
prowess. Although the combination initially faced skepticism, the doubting
subsided after Deutsche Bank integrated BT.
Year of the ax
The year 2001 will go down as one of the most brutal years for global German
banks. Deutsche, like its fellow German über-banks, cut thousands of jobs.
In all, Deutsche announced 9,200 layoffs as a result of the worldwide
economic slowdown. Early in the year, the bank unveiled plans to cut 2,600
jobs as part of its company-wide restructuring. In November, the bank
announced plans to slash 3,300 positions in its private client and asset
management division, and another 1,200 in its technical support division. As
the year came to a close, the bank’s corporate and investment-banking
division took the hit, as 2,100 more layoffs were announced in December.
That same month, the bank revealed plans to sack 1,500 employees as a result
of the integration with Zurich Scudder.
The downsizing of the board – which The Wall Street Journal has called the
“most exalted council in German finance” – signaled an important change
from a consensus-driven German management style, where the board
members take collective responsibility for decisions, to a more American
management style, with a strong chief executive. Newly appointed Chairman
Josef Ackermann, who succeeded Rolf Breuer in May, will oversee the board
and is expected to run the kingdom of Deutsche much like an American CEO
(German law doesn’t allow a corporation to have an actual CEO).
Ackermann’s takeover of the board, and of the bank itself, also signals a
monumental strategy shift for the world’s second largest bank. Unlike his
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Deutsche Bank
The Scoop
Although Deutsche’s M&A unit ascended the charts in 2001, its underwriting
practice fell a few notches. In 2001 Deutsche slid a few places on several
important underwriting league tables, including global debt and equity
offerings (from 7th in 2000 to 9th 2001), global debt offerings (from 6th to
9th), and equity and equity-related issues (from 9th to 10th). However, for the
first half of 2002, Deutsche did rank 6th in both global debt and equity
offerings, and global equity and equity-related offerings.
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Deutsche Bank
The Scoop
League Tables
10 Rothschild 68.5 76
11 Lazard 42.0 87
12 BNP Paribas 23.1 40
13 Cazenove 18.9 4
14 Dresdner Kleinwort Wass. 18.2 43
15 RBC Capital Markets 16.5 34
INDUSTRY TOTAL 590.3 11,585
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Deutsche Bank
The Scoop
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Deutsche Bank
The Scoop
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Deutsche Bank
The Scoop
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Deutsche Bank
The Scoop
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Deutsche Bank
The Scoop
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Deutsche Bank
The Scoop
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Deutsche Bank
The Scoop
Compensation
Pay
Analyst: 1st year: $55,000 per year (salary) + $25,000 bonus
Associate: 1st year: $85,000 per year (salary) + $25,000 signing bonus +
$30,000 year-end bonus
Perks
• Tickets to shows or sports events to entertain clients
• Free passes to museums and cultural events
• Stock options
• Dinner allowance after 8 p.m. and on weekends
• Car service after 9 p.m. and on weekends
professionals.
Organization
CEO’s Bio
Ackermann began his banking career 25 years before landing atop Deutsche’s
org chart. Ackermann joined Credit Suisse in 1977 after receiving a doctorate
in social sciences and economics and, like all Swiss men, serving time in the
Swiss army. He worked his way up through Credit Suisse’s ranks and served
as chief executive from 1993 until forced out in 1996. Aside from his talent
of getting up after he’s been knocked down, Ackermann was a champion
javelinist in his youth and is a talented pianist and skier – he’s not only the
chairman of Deutsche’s ski club, he’s also a member.
Business Units
Commodities
Manages risk and funds business growth for banks, governments, hedge
funds and commodity producers and consumers. In addition, Deutsche
provides research on commodities.
Corporate Finance
Advises companies on mergers, acquisitions, divestitures and traditional
loans, and supports other groups in equity and debt offerings. Groups within
corporate finance include Mergers & Acquisitions, Project Finance, Financial
Sponsors, Restructuring Advisory and Structured Finance.
Corporate Trust
Provides trust, agency, depositary and custody services to financial
institutions, corporations, governments and agencies. Corporate Trust is
subdivided into four groups: Equities, Debt Instruments, Structured
Financings and Tax-neutral and Tax-advantaged Structures.
Fixed Income
Provides financing alternatives such as corporate bonds, structured credit
instruments, securitized products, OTC derivatives, and commodities. Fixed
income is subdivided into Money Markets, Debt Capital Markets,
Governments/Agencies, High Grade Credit, High Yield, Futures & Options,
Interest Rate Swaps & Options, Credit Derivatives, Asset Securitization,
Emerging Markets, Convertible Bonds and Research.
Foreign Exchange
Provides clients with liquidity in the spot, forward, and options, and FX
markets. Foreign Exchange consists of the following sub-sectors: Spot,
Forward, Options, Global Liquidity Services and Research.
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Deutsche Bank
Organization
Global Equities
Offers sales and trading services with a focus on providing liquidity to clients.
This group includes Cash Equities, Convertible Bonds, Research, Program
Trading, Derivatives, Equity Prime Services and Research.
Asset Management
Provides equity, bond and real estate investment services to institutional
clients and private investors through a network of over 600 professionals.
Specific products include: commingled funds, sub-advised portfolios, master-
feeder portfolios, variable insurance trusts, common trust funds, mutual
funds, hedge funds, and fund of funds
Corporate Investments
Operating under the name DB Capital Partners, Corporate Investments
oversees Deutsche’s private equity and real estate portfolio investments, as
well as the bank’s industrial shareholdings and other investments. The unit is
broken down into four groups: Private Equity, Mezzanine, Venture Capital,
and Fund Investing.
Locations
Frankfurt: Worldwide headquarters
Key Officers
Spokesman of the Board of Managing Directors and Chairman of the
Group Executive Committee: Josef Ackermann
Global Head of Corporate Finance: Michael Cohrs
Chief Administrative Officer: Tessen von Heydebreck
Global Head of Global Markets: Anshu Jain
Global Head of Global Equities: Kevin Parker
Global Head of Private and Business Clients: Herbert Walter
Global Head of Private Wealth Management: Pierre de Weck
Chief Operating Officer: Hermann-Josef Lamberti
Global Head of Asset Management: Tom Hughes
Chief Financial Officer: Clemens Börsig
Global Head of Global Transaction: Jürgen Fitschen
Chairman: Rolf E. Breuer
Ownership
Deutsche Bank’s common stock is traded on the New York Stock Exchange
under the symbol DB.
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Deutsche Bank
Vault Newswire
October 2002: Deutsche takes M&A bronze
Deutsche Bank ranked third in announced European mergers and acquisitions
for the nine months ended September 30, 2002. Advising on 76 deals worth
$72 billion, Deutsche trailed only J.P. Morgan and Morgan Stanley. This was
a decent jump for the German bank: During the same period in the previous
year, Deutsche ranked seventh in announced M&A activity.
unit also “once again ranked second for independence, although the votes it
received there were less than half of those it received for usefulness.”
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Deutsche Bank
Vault Newswire
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Deutsche Bank
• Deutsche Bank, with HSBC and J.P. Morgan, lead managed European
Investment Bank’s five billion euro debt offering.
• Deutsche Bank and Credit Suisse First Boston lead managed a $500 million
debt deal for Coca-Cola Enterprises.
• Deutsche Bank, with J.P. Morgan Chase, lead managed $400 million bond
offering for Pitney Bowes.
August 2002
• Deutsche Bank and Salomon Brothers lead managed Asian Development
Bank’s $500 million bond offering.
• Deutsche Bank along with CSFB and Dresdner, lead managed Viacom’s
$600 million note offering.
• Deutsche Bank, with Merrill Lynch, lead managed a $150 million debt
offering for Duke Realty.
• Deutsche Bank co-lead managed, along with CSFB, a $175 million bond
offering for Manitowoc, a manufacturer of cranes and related equipment.
July 2002
• Deutsche Bank, along with BofA Securities, co-lead managed a $480
million bond offerings for Safeway.
• Deutsche Bank lead managed a $151 million bond offerings for Linde
Finance BV.
• Deutsche Bank, along with ABN Ambro and Lehman Brothers, co-lead
managed Countrywide Home Loans’ $750 million bond offering.
• Deutsche Bank lead managed a $64.5 million bond offerings for American
Honda Finance.
• Deutsche Bank, with J.P. Morgan Chase, co-lead managed a $200 million
bond offering for Emirates Bank International.
June 2002
• Deutsche Bank, with Merrill Lynch and Lehman Brothers, advised
Railtrack on its $11.5 billion sale to Network Rail.
• Deutsche Bank co-lead managed, along with BofA Securities and Salomon
Smith Barney, a $600 million bond offering for Verizon Global Funding.
• Deutsche Bank co-lead managed, along with Societe General and BNP
Paribas, a $1.4 billion secondary offering for Vivendi Environment.
• Deutsche Bank, along with BofA Securities and J.P. Morgan Chase, co-lead
managed $1 billion and $500 million bond offerings for Hewlett-Packard.
• Deutsche Bank, with UBS Warburg, co-lead managed a $155 million bond
offerings for Dave and Buster’s.
May 2002
• Deutsche Bank lead managed Lin TV Corp.’s $374 million IPO.
• Deutsche Bank, along with BofA Securities and UBS Warburg, co-lead
managed HealthSouth’s $1 billion bond offering.
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Deutsche Bank
Select Recent Transactions
April 2002
• Deutsche Bank, along with Salomon Smith Barney, co-lead managed
Baxter International’s $500 million bond offering. Baxter International
provides medical products and services that primarily treat people with life-
threatening conditions.
• Deutsche Bank co-lead managed, along with Lehman Brothers, the $148
million IPO for Medical Staffing Network, a nurse staffing services
provider.
Come together
The 1999 merger of Deutsche and Bankers Trust (which owned Alex. Brown
at the time) plays a significant role in explaining the firm’s current work
environment. A Deutsche insider and former employee of Alex. Brown
speaks favorably of the merger. “Things have moved very smoothly. The
merger wasn’t 100 percent seamless, but it was a fluid transition.” Another
insider agrees, saying “the merger played out well.” That source, however,
also notes that the firm has become “more bureaucratic since the merger,
which was expected, but not necessarily welcome.” However, a former
Deutsche insider and, prior to that, Bankers Trust employee, says the merger
for Bankers Trust “wasn’t smooth, because BT employees remained
relatively independent” from Deutsche. He adds that Alex. Brown “merged
more successfully because it was put in charge of the investment-banking
operations” at Deutsche. The contact goes on to say, “Although they wanted
to make it seem like a merger, it wasn’t. It was an acquisition. They lost a
lot of talent that they couldn’t replace, and they’re still reorganizing.”
Another source agrees that the BT/Alex. Brown coupling was – and still is, to
some extent – an issue. “BT had more of a cowboy culture, while Alex.
Brown was a white-shoe firm,” reports that insider, who adds that the
Deutsche acquisition of Alex. Brown was flawed in its own way. “Deutsche
paid $2 billion for Alex. Brown, then killed its name. So [the deal] was worth
zero in the end.”
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Deutsche Bank
Our Survey Says
its employees “discounts to museums and ball games,” says one Baltimore-
based insider.
“Deutsche’s a big patron of the arts,” says one New York-based insider.
Deutsche gives employees a “culture card,” which gets you free admission to
most museums. “We’re like a platinum member to all those places,” says a
Deutsche banker. Frequent-flier miles might be considered another perk.
“Deutsche’s very international – our corporate finance unit is based overseas
– so there’s tons of opportunity to travel,” says an insider. “In just eight
months, I’ve been to Australia, Japan, Hong Kong, Spain, Germany, Poland,
and London – a bunch of times.” He admits that traveling is “cool,” but adds
“After you know the drill, it gets a little old.”
Getting Hired
The Hiring Process
The firm says that it looks for candidates who demonstrate “initiative” and
“excellence” and who will work well in a team environment. One financial
analyst reports that the firm “looks for smart people and thinks that grades are
very important in determining mental horsepower. Also, the company looks
for a strong work ethic, and an outgoing and engaging personality, because
you have to get along with clients when away from the office and with peers
when working 100 hours a week.”
In addition to the usual top undergrad and MBA programs, the bank “hires
from other schools, but [those] candidates must be more proactive,”
according to one source. Another contact says getting hired is “becoming
much more demanding than it was even one or two years ago. It’s not only
due to the downturn in the market, but also the result of a more focused and
organized recruiting effort, resulting in tougher standards.” Another source
agrees: “One year ago it was tough. Now it’s impossible.”
The firm also offers summer analyst and associate positions. Summer
positions for investment banking are available in New York, Europe,
Singapore and Hong Kong, and last anywhere from six to 10 weeks between
June and September. A European-based trader says acceptance for summer
internships is based on two 30- to 45-minute “two-on-one” interviews.
Back to school
Those who join the firm as full-time investment-banking analysts participate
in four to six weeks of training in New York. Those who sign on as
investment-banking associates attend a four-week training program in New
York. Analysts in sales, trading or research are in for eight to 12 weeks of
training in London; associates can expect either six to eight weeks in New
York or eight to 12 weeks in London, depending on the division. In addition
to the formal training, the firm offers continuing education classes. Deutsche
“is quite accommodating to employees who show a desire to attend one-, two-
and even three-day training courses,” says one employee.
Questions to Expect
1. Walk me through the three financial statements.
Accounting 101. Know the major line items on the Cash Flow Statement, the
Income Statement and Balance Sheet. For example, on the Cash Flow
Statement, be ready to answer with: First, the Beginning Cash Balance, then
Cash from Operations, then Cash from Investing Activities, then Cash from
Financing Activities, then the Ending Cash Balance. In addition, know how
the statements flow together. For example, the main link between the Income
Statement and Balance Sheet is profits generated in the Income Statement are
added to shareholder’s equity on the Balance Sheet as Retained Earnings.
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Deutsche Bank
Getting Hired
says: “I want to hear someone who really knows a stock. Tell me the name
of the company, the ticker, what price it closed at yesterday, its 52-week
range, the market cap, the industry sector the firm is in, your estimated 12-
month target price and how you got to that price.”
10. What have you read in the paper that interests you?
A chance to show you read more than the red and purple sections of the USA
Today.
Questions to Ask
1. How has your experience at Deutsche been?
This gets interviewers talking about themselves (always a good idea) and, in
doing so, you’ll learn more about the firm’s culture.
4. How has the recent hire of John Doe, new head of X unit, worked out?
Rather than ask a general question about the firm, employees like to get
questions that are very specific such a question inquiring about a recent senior
manager hire. That shows that you have a high level of interest – or, at least,
gives that impression.
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Deutsche Bank
Getting Hired
To Apply
Employment Contact
Corporate Finance
Nebal Fahed
Cfcampus.teamus@db.com
professionals.
On the Job
Job Descriptions
Associate, Research
6:00 a.m.: Wake up. (“Unfortunately, working in research, you have to get up
pretty early.”)
7:00 a.m.: Arrive at work. (“I live pretty close to work, so I walk. My office
is in midtown [Manhattan], so it’s walkable from the Upper West Side. I just
walk across the park.”). Check e-mail, and Reuters and Bloomberg for news
on the companies you cover.
8:00 a.m.: Meet with your group. (“I have an eight o’clock coffee break with
my boss and group to touch base. It’s a daily ritual.”)
9:00 a.m.: Sit in on an earnings call (an earnings call is when a company you
cover releases their quarterly earnings.)
10:30 a.m.: Q&A on the phone with company management about earnings
call.
11:00 a.m.: Field calls from Deutsche sales force inquiring about the earnings
call. (“Maybe make a few follow up calls to the company, too.”)
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Deutsche Bank
On the Job
12:00 p.m.: Lunch at desk. (“I often go out to lunch, but during busy times –
earnings season – I’ll eat my desk.”)
12:30 p.m.: Begin writing the “first call note, (which typically takes the rest
of the day. First thing you do is drop in the new numbers to update the
financial model. Then, based on that, you look at broader macroeconomic
stuff, like commodity prices. [With the first call note,] there are two schools
of thought. The first one, and not the best in my opinion, but a lot [of banks]
do it, is to hit investors’ desks first – finish the report quickly so yours is the
first report out there. The second school, which is what we do, is to send out
a ‘value added’ report, where you think about, rather than just summarize, the
call. I think people appreciate that.”
3:00 p.m.: Meeting with a company out of the office. (“Because so many
companies are based in New York, you go to a lot of these. It’s usually you
[an associate] and a lead analyst who meet with the company’s senior
management, often including the CFO.” You have these meetings to get more
detailed and intimate details about a company you cover. And you’ll also get
some off-the-record stuff. These meetings usually last a couple of hours.)
8:00 p.m.: Complete and submit the first call note, (“which is reviewed by a
supervisory analyst and compliance, to make sure that you didn’t break any
rules – especially in this environment.”)
Final Analysis
The 1999 acquisition of Bankers Trust marked Deutsche’s run towards its
goal of scoring a spot among the bulge bracket firms in the U.S. Three years
later, Deutsche still has considerable ground to gain if it wants to be
considered equals to the likes of Goldman, Morgan Stanley, Merrill and
CSFB, but the German giant has steadily moved up the U.S. investment-
banking league tables. And with the recent promotion of Josef Ackermann to
CEO, the firm seems on its way to move up even further. Ackermann, the
previous head of investment banking at Deutsche, is leading a charge to focus
on investment banking at the expense of other lower margin businesses. If
Deutsche does continue to gain ground, its prestige, and thus the prestige of
a Deutsche job, will also certainly rise.
Recommended Reading
The firm’s web site, www.db.com, gives a good overview of the company,
including recent press releases and annual reports. For historical perspective,
seek the hard-to-find The Deutsche Bank, 1870-1995, by Gerald D. Feldman
and Lothar Gall (Trafalgar Square Publishing, March 1996). We recommend
the following articles for more recent information on Deutsche Bank:
• “Can This Man Crank Up Deutsche?” BusinessWeek Online, May 20, 2002.
• “Deutsche Finds It Must Shed Its German Past in Order to Grow,” The Wall
Street Journal, February 14, 2002.
• “Deutsche to Cut 20% of the Staff in Scudder Deal,” The Wall Street
Journal, December 5, 2001.
ISBN 1-58131-226-1
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