Deutsche Bank head of retail calls for executive bonuses to be waived for second year running if results stay poor

 
Hayley Kirton
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The board went bonus-less when the bank revealed a full-year loss for 2015 (Source: Getty)

One of Deutsche Bank's key management members has urged that the executive team's bonuses be waived if the German lender continues to perform poorly.

Retail bank head Christian Sewing has suggested the bank must place its investors concerns first, even if it means the upper-most management forgoing an annual sweetener for the second year running.

"What's clear is that if we don't pay our shareholders a dividend, then our own bonus must be put up for debate," Sewing told German newspaper Bild in an interview published today.

Deutsche Bank's management board went without a bonus in 2015, after the lender posted its first annual loss since 2008.

"In the context of the overall performance of the bank last year, which the board has to own... that is a decision which I respect," chief executive John Cryan said at the time the results were announced.

Read more: Banking shares plunge for second day as stress test fallout rumbles on

In its second quarter results, the bank revealed net revenues had fallen by 20 per cent compared with the same period in the year before, while income before taxes had plummeted by 67 per cent.

The German bank also failed the US Federal Reserve's stress tests back in June, while more recently it was booted from the Eurostoxx 50 index after its share price went into freefall and its market cap dropped to record low.

Deutsche Bank shares are currently trading down 2.6 per cent on their most recent closing price at €12.34. Shares are also down more than half on their position a year ago.

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