LONDON/FRANKFURT Feb 5 Deutsche Bank AG has capped cash bonus payouts for its bankers at 300,000 euros ($405,300) for a second year, people familiar with the bank said on Wednesday.
The structure of pay will be the same as 2012, whereby more pay is deferred the higher the bonus, the sources said, who asked not to be named as the details are not public.
Deutsche, which told staff about bonuses on Wednesday, said last week total pay in its corporate banking & securities division was 5.3 billion euros for 2013, down 14.4 pct from 2012. Details on how much is variable and how much is deferred will be released on March 20.
Banks are under pressure to rein in pay, as regulators and politicians say it encourages risk-taking and contributed to the financial crisis. Bonuses are expected to be flat to slightly lower at most banks for 2013 compared to 2012, although UBS said on Tuesday it would raise pay for staff to narrow a gap with rivals.
Banks are deferring more of their annual bonuses, and Deutsche will spread its deferred pay over three years, with one-third of the amount paid in 2015, 2016 and 2017, the sources said. Half of the amount is in cash and half is in shares.
For bonuses of between 100,000 and 200,000 euros, 50 percent will be deferred, one of the sources said. For bonuses of 200,000-500,000 euros 75 percent is deferred, for bonuses of 500,000-1 million euros 85 percent is deferred, and any bonuses above 1 million euros are fully deferred, the source said.
Deutsche Bank changed its pay structure for 2012 to encourage bankers to focus on "longer-term sustainable performance".
Deutsche Bank's two chief executives last week said the bank still had some way to go to win back public trust and prove it can overhaul its corporate culture after a series of scandals.
Germany's largest lender is facing an number of investigations into the conduct of its employees and a jump in litigation costs was partly responsible for a surprise 1 billion euro ($1.37 billion) fourth-quarter loss.
Deutsche Bank declined to comment.