Deutsche defers bonuses
DEUTSCHE Bank will defer any part of an employee’s bonus above €200,000 this year, a source close to the bank said, making it the latest industry player to limit pay in the face of fierce criticism of the industry.
Any staff with a bonus at or below the maximum would see half of it in cash, and half of it in equity shares that they can sell in August.
“Anything above that is paid in deferred compensation,” the source said. The deferred portion will also be half cash and half shares, and will be paid out over a period of three years in equal annual installments, beginning in 2013.
The bonus restrictions, designed to affect the 2011 awards being paid out now, are most likely to hit Deutsche’s investment bank.
Deutsche is still one of the best payers in the industry, with average pay for investment bankers at €332,785 in 2011, down 12 per cent on 2010 levels.