FRANKFURT (Reuters) - DWS, an asset manager controlled by Deutsche Bank (ETR:DBKGn), began its annual shareholder meeting on Thursday, with the adviser Institutional Shareholder Services (ISS) urging investors to vote against the management of the company for 2022.
Last year, the chief executive stepped down after raids by prosecutors over accusations of so-called "greenwashing", which both the company and the former chief executive have disputed.
Regulators on both sides of the Atlantic have been investigating the matter, which has cast a shadow over DWS.
ISS said a vote against the management was "warranted because this would be the last time shareholders could hold the former CEO accountable" over accusations that DWS may have misled investors about "green" investments.
The case "may lead to significant costs and material damage to the company, especially considering the former CEO's sudden resignation in regard to this matter," it said in a report.
Any discontent voiced by shareholders through their votes at Thursday's virtual meeting is likely to be outweighed, however, by Deutsche Bank, which owns nearly 80% of DWS.
DWS has been trying to clean the slate under a new chief executive, Stefan Hoops, a former Deutsche Bank executive who plans to tell the meeting that DWS has been co-operating with investigations, a transcript of prepared remarks on its website showed.
The company also continues to stand by its financial disclosures and its fund prospectuses, Hoops will add.
Glass Lewis, another shareholder adviser, has recommended that shareholders abstain in ratifying management from last year "as a matter of caution".
Glass Lewis and other groups such as Greenpeace have raised concerns about executive pay and severance packages at the company. DWS has responded that shareholders have already approved its remuneration policies by a wide margin.