UPDATE 1-Commerzbank to change exec bonus structure

(Updates with details from interview)

FRANKFURT, Nov 15 (Reuters) - Germany's second-largest bank, Commerzbank, will adopt a new bonus structure for its top executives after recently changing its employee bonus structure, the bank's supervisory head told a German newspaper.

Last week Commerzbank (CBKG.DE) announced a new bonus model for employees that includes pooling bonuses and not paying them out if the bank does not meet certain growth criteria. [ID:nL0646259]

A new bonus system will now be introduced for the bank's executive board, the head of Commerzbank's Supervisory Board, Klaus-Peter Mueller, told Handelsblatt newspaper in an interview.

Executive pay at Commerzbank is already limited to 500,000 euros ($743,800) as part of restrictions placed by the bank rescue fund SoFFin in exchange for an 18 billion euro bailout.

The bank is waging a legal campaign on several fronts against former employees over pay. [ID:nLF590059] [ID:nLU501174]

Asked whether government demands placed on Commerzbank's remuneration and on cutting its dividends were fair, Mueller said that whoever turns to state aid must allow that it will come with certain restrictions.

"This should hold for all, without exception. On the other hand we need to make sure that also in such a crisis that work is reimbursed appropriately," he said.

Mueller said the ideal bonus payment structure for top management might be based on a 40 percent fixed salary, a 20 percent short-term bonus, and an additional 40 percent that could tied to mid-term performance over a three to four year period.

Speaking in his role as the head of the Corporate Governance Commission, Mueller told the newspaper that he does not accept the line of reasoning that excessive bonuses cannot be curbed.

"There are 10 large investment banks worldwide. Why can't they agree not to pay excessive salaries?" he added.

Europeans need to have the courage "to free themselves from the Anglo-Saxon developments (in the banking world), when we believe they are wrong," he said. ($1=.6722 Euro) (Reporting by Tyler Sitte; Editing by Leslie Adler)