FRANKFURT Jan 14 Deutsche Bank's
investment bank bonuses for 2012 will likely fall 15-20 percent,
two sources familiar with the matter said on Monday.
The move comes after a year of restructuring at Deutsche and
after pressure from regulators to clamp down on short-term
Deutsche Bank declined to comment.
For the industry as a whole, 2012 bonuses could be down by
as much as 30 percent compared with 2011 levels.
The total amount put aside for pay and bonuses in the first
nine months of 2012 by eight top international investment banks,
including JPMorgan and Deutsche Bank, was down 7 percent
on average from 2011 levels and has fallen further than
revenues, third quarter results showed.
In September, Deutsche Bank co-Chief Executive Anshu Jain,
previously the head of investment banking, warned that the
payout ratio - the proportion of net revenues set aside for
banker pay - would come down.
Deutsche Bank has already reformed the way it awards pay.
For investment bankers, bonuses are determined on the basis of
the bank's overall earnings performance.
The bank uses certain return on equity ratios over a
two-year period as benchmarks for determining pay.
At least 60 percent of total variable compensation is
granted on a deferred basis, and no more than 20 percent is paid
out in cash immediately.
Deutsche Bank has also forced senior managers to wait five
years, rather than three, to receive bonus share awards as a way
to encourage longer-term thinking.