One in 20 Deutsche Bank staff eligible to share in €1.1bn pay bonanza, despite slashed bonus pool

 
Hayley Kirton
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Deutsche Bank To Announce 2016 Financial Results
The bank has sliced into its pay pools after a 2016 which left it in the red (Source: Getty)

Around one in 20 lucky workers at Deutsche Bank is eligible for a handout from a €1.1bn (£950m) pot, despite the bonus pool being slashed by 77 per cent.

The 5,522 employees, which Deutsche feels it can ill afford to lose, will be eligible for a retention award of €554m in cash and €554m in equity between them.

However, the bankers will not be handed these amounts right away, as both parts of the award are deferred by at least three years. Additionally, the shares portion will not vest if the bank's share price does not hit certain targets.

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Deutsche Bank's total variable pay pool, which does not include the retention award, was slashed from €2.4bn to €500m this year, after a troublesome 2016 left the lender €1.4bn in the red.

The lender's annual sweeteners consist of an individual bonus based on whether an employee has hit their targets and a bonus from a group pool calculated on the firm's financial performance.

In January, it was announced anybody with vice president, director or managing director in their job title would not be receiving their individual bonus, a decision which affected approximately a quarter of the bank's 100,000-plus staff.

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Meanwhile, City A.M. revealed earlier this month the bank had also halved the amount of the payout bankers could be expecting from the group bonus pool.

The bank's management board also did not take a bonus for the year.

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