Stefan Hoops was named DWS Group CEO, replacing Asoka Woehrmann who is resigning amid allegations of ESG greenwashing at the money management firm.
Mr. Woehrmann, who became CEO in October 2018, will step down June 9 to relieve the burden on the company and his family in relation to the allegations, a news release said Wednesday. Mr. Hoops joined Deutsche Bank in 2003 and has served as head of its corporate bank since July 2019.
DWS Group is being investigated by regulators in the U.S. and Germany for allegations made by its former head of sustainability that it misrepresented its ESG investing.
Deutsche Bank and DWS Group offices in Frankfurt were raided on by German police on Tuesday in relation to those allegations, according to Bloomberg.
In a separate emailed statement, DWS said it has fully cooperated with authorities and will continue to do so. It stands by a statement made last August defending its ESG disclosures.
"We understand a variety of actions are required to ensure a thorough and complete investigative process. We remain committed to working with any authorized bodies to clarify any and all queries they may have. They have a job to do and DWS will do everything in its power to support them in that undertaking," the DWS statement said.
Karl von Rohr, president of Deutsche Bank and chairman of DWS's supervisory board, in the release praised Mr. Woehrmann for the decision to resign, which Mr. von Rohr called "a testament to his sense of responsibility."
Mr. Hoops' appointment is subject to regulatory approval, according to the release.
DWS Group had €902 billion ($1 trillion) in AUM as of March 31.
