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Deutsche Bank mulls deep cuts to 2018 bonuses

Deutsche Bank/Bloomberg

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Deutsche Bank cut the bonus pool for 2018 to less than EUR 2 billion ($2.3 billion), between 10 per cent and 15 per cent lower than in 2017.

Thursday 07, March 2019

(Bloomberg) --Deutsche Bank employees learned their bonuses, with many facing deep cuts and some bankers in New York and London receiving zero pay-outs.

Many of those who avoided large cuts to their 2018 bonuses did so because they had guaranteed payouts, such as recent hires. Some top performers received raises.

The bank is making more selective payouts in an attempt to keep top earners, Bloomberg reported in January. The bank will disclose the final size of its bonus pool on March 22 when it publishes its annual report.

The embattled lender has faced numerous scandals in recent years, including a dramatic raid at its Frankfurt headquarters in November as German authorities looked for evidence of money laundering.

Deutsche Bank’s equities trading unit lost about $750 million last year and the bank has considered closing its entire equities operation, people familiar with the matter have said. Revenue at the investment bank, which accounts for the lion’s share of the bank’s bonuses, dropped 5 per cent in the fourth quarter and its profit plunged 48 per cent in the year.

Two managing directors in New York announced plans to leave the bank in recently weeks, including Co-Head of Equity Sales Craig Bench.

 

TAGS : Deutsche Bank

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