The head of Deutsche Bank will be sent back to court for a retrial over windfall bonuses he waved through at telecoms firm Mannesmann.
Josef Ackermann and five others had been acquitted by a regional court last year of wrongdoing in paying departing executives of Germany's Mannesmann almost €60 million in bonuses and benefits five years ago.
But Germany's federal court today overturned the ruling and said Ackermann had failed in his duty to protect Mannesmann's interests.
"Such a bonus is nothing other than a waste of money and that runs against their fiduciary duty," said Klaus Tolksdorf, the lead judge overseeing the hearing, before a crowded court. "There was no incentive to management as a result of the payments."
Ackermann's lawyer said the ruling sent the case "back to square one" and insiders at the bank admitted that it was a disappointment.
The decision threatens his future as head of the bank. Although Germany's financial watchdog BaFin said it would not push for Ackermann to resign, the retrial is likely to increase pressure on him to step down.
The payments to Mannesmann Chief Executive Klaus Esser and others were signed off by Ackermann and other board members after Mannesmann gave up its fight against Vodafone Group's €178 billion hostile takeover in 2000.