Commerzbank accelerates search for new CEO: Orlopp in focus

Commerzbank is currently undergoing an intense process to find a successor for the incumbent CEO Manfred Knof, while simultaneously dealing with a potential takeover attempt by competitor UniCredit. CFO Bettina Orlopp remains a strong candidate for the top position, although the financial institution is also reviewing external applicants with the help of headhunter Egon Zehnder, according to sources familiar with the matter. A starting date for Knof’s successor has been discussed, including January as a potential date, although no firm decision has been made yet. Representatives of Commerzbank and Egon Zehnder declined to comment. The decision to expedite the search comes at a time when the German bank is preparing for an unexpected initiative by UniCredit. The Italian rival announced this month that it has acquired a 9% stake in Commerzbank and indicated possible negotiations. Shortly before this move became public, Knof had announced that he would not be available for another term when his contract expires at the end of next year. The board of Commerzbank is considering various options on how to respond to UniCredit's advance, including a potential defense strategy, as reported by Bloomberg. The German daily Handelsblatt reported on Tuesday that Commerzbank is considering speeding up the succession process. During his tenure, Knof steered Commerzbank away from a focus on physical branches, investing instead in digital services. His transformation strategy was further boosted by the sharp rise in inflation, which prompted the European Central Bank to implement an unprecedented series of interest rate hikes, benefiting the profitability of the banking sector. According to informed circles, UniCredit’s approach might complicate the search for a new CEO. Investors have already shown their support for Orlopp, who was not considered for the role four years ago. “Commerzbank is weakened by the impending CEO change during this critical phase,” stated Andreas Thomae, fund manager at DekaBank. “The supervisory board should now quickly provide clarity and announce who will lead the bank in the future. Bettina Orlopp is certainly a potential candidate.”