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
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.