Commerzbank seems to be facing an unprecedented wave of management changes as CEO Martin Blessing announced that he will be stepping down from his position in October 2016. Blessing, who has been in charge since May 2008, has helped Germany's second largest lender recover after the financial crisis.
Even though it had not been an easy decision, BBC News noted that Commerzbank current CEO Martin Blessing said that now was the right time for him to embark on a "new chapter" in his career. His retirement from the bank came after he declined the offer to extend his current contract, which runs until the end of October 2016.
"I deeply regret this decision and was hopeful that we could extend the contract," Supervisory Board Chairman Klaus-Peter Mueller said.
Amid the financial crisis, 52-year-old Blessing, a University of Chicago graduate and former McKinsey consultant, has restored Commerzbank's health following the troubles they experienced after taking over Dresdner Bank. According to Reuters, the state had to bail the bank out with more than €18 billion in funds. However, much of the debt has now been repaid.
Under Blessing's leadership, Commerzbank, which finances more than a third of the country's export, has cut costs and shrunk its balance sheet by exiting shipping and commercial property loans. The bank also announced that they are planning to pay a dividend for 2015, which would be its first since 2007. However, Blessing expressed that it's time for the bank to have a new CEO.
"It is now time for me to embark on a new chapter in my professional life," Blessing said. "We have overcome the major challenges of the financial crisis or will do so in the coming months. We are also clearly on track to reclaiming our position as a sustainably successful bank."
As Blessing announced his looming departure, it remains unclear who will be the next Commerzbank CEO since the company does not have a deputy CEO on its board. Meanwhile, a Finance Ministry spokesperson declined to comment on the announcement made on Sunday.
Blessing, who has led the Commerzbank during an €18.2 billion ($20.1 billion) bailout in the financial crisis and scored its subsequent restoration, proved to be one of the most resilient bank CEOs in Europe. Bloomberg Business reported that he remained at the top of the company amid an ill-fated takeover and a write-down on Greek debt.
In addition, Blessing has sold stocks on multiple occasions to bolster capital, cut jobs and disposed of soured loans. He is also the recent CEO who followed the footsteps of the CEOs at Deutsche Bank AG, Barclays Plc and Credit Suisse Group AG who have ditched their positions in recent months.
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