Commerzbank execs next to get bonus curb
COMMERZBANK intends to adopt a new bonus structure for its executives that will further limit management remuneration at Germany’s second-largest bank.
The bank has already announced a new bonus model for its employees that included pooling bonuses and not paying these out if the bank does not meet certain growth criteria.
In an interview with a local newspaper, Commerzbank supervisory board head Klaus-Peter Mueller will today say that a similar system will be introduced for the bank’s executives.
Executive pay at Commerzbank is already limited to €500,000 (£446,000) as part of restrictions placed on the bank by the bank rescue fund SoFFin in exchange for an €18bn bailout, and the bank is waging a legal campaign on several fronts against former employees over pay.
Mueller, who is also the head of a Government commission on corporate governance, told the newspaper that Europeans need to have the courage “to free themselves from Anglo-Saxon developments” (in the banking world), when they believe they are wrong.
“Why can’t (large banks) come to an agreement to no longer pay out excessive salaries?” he said.