You are here

Deutsche Bank to cut bonus pool by about 10% for 2018

[FRANKFURT] Deutsche Bank's management board has decided to cut the bonus pool by around 10 per cent compared with 2017 as the German lender tries to juggle cost pressures with concerns of a talent drain, according to people familiar with the matter.

Bonuses will be paid more selectively in an attempt to keep its top earners, the people said, declining to be identified as the decision hasn't been made public. A decision on the final figure could change, depending on the bank's fourth quarter numbers, they said. A Deutsche Bank spokesperson declined to comment. The bank awarded about 2.2 billion euros (S$3.4 billion) in bonuses for 2017.

Deutsche Bank chief executive officer Christian Sewing is seeking to slash costs while holding on to key staff that generate revenue for the troubled firm.

Top executives have repeatedly said that the lender will pay "competitively", but the slumping share price is less than half what it needs to be for previously granted retention awards to vest, frustrating many top performers, people familiar with the matter have said.

sentifi.com

Market voices on:

BLOOMBERG