In the midst of the Unicredit crime: Urlöp becomes the new CEO of Commerzbank

FRANKFURT (awp International) – In the midst of the takeover battle with Unicredit, Commerzbank is appointing new top management. The Frankfurt institute announced that the supervisory board has decided to appoint CFO Bettina Urlaub (54) as CEO. She is to replace current CEO Manfred Knopf “with immediate effect”. At the same time, corporate client manager Michael Kutzbauer will become the bank’s new deputy chairman. The timing of the change was not mentioned.

Together with Urloop, they have found “the ideal solution for the successor at the top of Commerzbank,” said Jens Weidmann, Chairman of the Supervisory Board. “Especially in the current phase of the bank, clear responsibilities are crucial. I would like to thank Manfred Knopf, without whose determination and strategic vision the bank would not have been so successful again today.”

In early September, the Frankfurt DAX Group unexpectedly announced that Knopf, 59, would fulfill his contract, which expires at the end of 2025, but would not extend it. He has led the bank since 2021 and pushed ahead with a restructuring of Commerzbank — including thousands of job cuts. Under his leadership, the financial institution has turned things around and posted record profits in 2023, thanks in part to higher interest rates.

Unicredit entry puts pressure on board

But with the entry of the Italian giant UniCredit shortly after, which replaced Commerzbank, Germany’s second-largest private bank came under pressure. Major investors, such as investment firm Deka, pushed for a quick clarification of the management board. Commerzbank, it was said, needed clarity at this critical juncture.

Unicredit recently unexpectedly acquired Commerzbank on a large scale. The Italians recently received an option through financial instruments to increase their stake in Commerzbank from 9 to 21 percent.

That would make UniCredit the largest shareholder by far, ahead of the federal government, which owns around 12 percent. At the same time, UniCredit has applied for formal permission to increase its stake to up to 29.9 percent. That makes a formal takeover bid for Commerzbank more likely.

The Federal Government has decided not to sell any more Commerzbank shares until further notice. The Federal Government rejects Unicredit’s takeover attempt. Chancellor Olaf Scholz (SPD) speaks of an “unfriendly attack”.

Urlaub also does not support any takeover, according to a report in the Financial Times (FT/Wednesday). Arguments against a UniCredit takeover include that it would hurt Commerzbank’s lending to German small and medium-sized companies, and that merging the two banks could take years, people familiar with the situation told the FT.

Orlop has been a long time favorite.

Urlaub has long been considered a hot candidate to succeed Knopf. The former deputy CEO has been at Commerzbank since 2014 and has been a member of the management board since the fall of 2017. She was previously a partner at management consulting firm McKinsey. The business administration graduate and mother of two once described herself as a “loyal soul” because she had only worked for two employers in her career.

“I look forward to this difficult task, which I will undertake with respect, but also with great self-confidence and an excellent management team by my side,” said Orlup. “We have a successful strategy, but we also have big tasks ahead of us.”

Commerzbank said Urlaub and Kutzbauer will receive a five-year contract when they take up their posts. The supervisory board has started a selection process for the CFO position. For the transitional period after the handover of the baton, Urlaub will continue as CFO in the personal union./as/DP/nas