Bettina Orlopp: The woman appointed to lead Commerzbank during the UniCredit acquisition conflict

• Bettina Orlopp, the current Chief Financial Officer of Commerzbank, will soon become the bank's chief executive.
• UniCredit is considering taking over the lender, which is currently facing challenging times.
• Since 2014, Orlopp has been with the bank and will succeed current CEO Manfred Knof.

Bettina Orlopp, a 10-year veteran and current Chief Financial Officer at Commerzbank, has been appointed as the bank's new CEO in an effort to defend against a potential hostile takeover from UniCredit.

UniCredit's move to become the bank's largest shareholder has put the bank on the defensive, indicating the possibility of a full takeover.

This month, Milan-based bank began building its stake in Commerzbank with a 9% share, while UniCredit announced it had acquired additional Commerzbank shares, increasing its stake to approximately 21%. Additionally, UniCredit submitted a request to increase its holdings to 29.9%.

Both Commerzbank's senior officials and the German government, previously the company's largest shareholder, have expressed opposition to a hostile takeover. Now, Orlopp will lead the charge in opposing the takeover.

Orlopp will succeed Knof as Chief Executive of Commerzbank in the near future, after the board unanimously agreed on him following an internal and external search for candidates.

Orlopp's contract has been set for five years, according to Commerzbank, with the search for her replacement as CFO still ongoing.

While expressing excitement for the new challenge, Orlopp acknowledged the substantial tasks that awaited her.

"We will overcome the obstacles ahead with the help of our key partners," she stated.

Need for a 'credible CEO'

Since March 2020, Orlopp has been Commerzbank's CFO, responsible for finance, investor relations, tax, and treasury departments, as stated on the bank's website. Additionally, she has served as the deputy chairwoman of the board of directors at the German bank since 2021.

Since joining Commerzbank in 2014 as a divisional board member for group development and strategy, Orlopp has held various positions on the bank's executive board and board of managing directors, overseeing areas such as compliance, legal, and human resources divisions.

Before joining Commerzbank, Orlopp spent 19 years at McKinsey. She has a business administration diploma from the University of Regensburg and a doctorate in finance.

Last week, journalists were informed by Orlopp that the current state of UniCredit was not what he had anticipated, but he urged them to remain calm.

"The process has taken us all by surprise," she said, according to Reuters. "Now, the most crucial step is to handle it calmly and consider what's at stake before taking action," she added.

Commerzbank officials have expressed their concerns about a potential merger with UniCredit, with some being more direct in their statements. Stefan Wittman, a member of Commerzbank's supervisory board, stated on Tuesday that the bank hopes to avoid a hostile takeover and warned that significant job cuts could occur if the deal goes through.

Commerzbank has undergone restructuring since 2016, and Orlopp has been present during the entire process, including merger discussions with Deutsche Bank in 2018 and 2019.

In 2020, when Orlopp was appointed CFO, Commerzbank was under pressure from Cerberus, a U.S. private equity group that owned about 5% of the bank, according to Reuters. Cerberus demanded changes in personnel and strategy, including cost cutting, at the German lender.

The CEO and chairman of the supervisory board resigned due to pressure from shareholders to reduce costs. Knof was appointed CEO in 2020 and assumed the role in 2021.

On Wednesday, Thomas Schweppe, the founder of 7Square, stated on CNBC that he believed it was crucial to swiftly appoint Orlopp as CEO. "The situation is untenable. A company cannot be defended without a credible CEO," he said.

Schweppe emphasized the importance of Orlopp's extensive experience at Commerzbank, stating that it will enable her to start immediately.

He added, "Obviously, she has been involved in some decisions that may have contributed to the difficult situation Commerzbank is currently facing."