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Deutsche Bank may put bonuses to AGM vote in May-CEO
March 20, 2014 / 5:37 PM / 4 years ago

Deutsche Bank may put bonuses to AGM vote in May-CEO

DUESSELDORF, March 20 (Reuters) - Deutsche Bank’s shareholders will likely be asked at the annual general meeting in May to decide on the future bonus policy of Germany’s flagship lender, co-Chief Executive Juergen Fitschen said.

European rules say that bankers’ bonuses cannot exceed the annual fixed salary, or twice that if shareholders approve, to curb the sort of excessive risk-taking blamed for the 2008-09 financial crisis.

“That (bonuses of twice the fixed salary) will probably be discussed in May,” Fitschen said at a panel discussion on Thursday.

Deutsche Bank increased pay for its Fitschen and co-CEO Anshu Jain by more than half in 2013, a year when Germany’s largest bank paid out billions of euros for past misdemeanours partly stemming from the financial crisis.

The two managers join the list of bank bosses to get chunky pay rises even though banks across Europe are still cutting jobs and struggling to boost returns in the wake of the crisis.

Fitschen stressed that to attract talent in places like New York or Moscow, Deutsche Bank needs to pay competitively.

“If you want lower units (of bonus payments) - be it one to one (fixed salary over bonus) or one to two - the fixed salary component will have to rise - even if we don’t like to see that,” Fitschen said. (Reporting by Arno Schuetze; Editing by Thomas Atkins)

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