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UPDATE 2-Deutsche Bank boards forego 08 bonuses after crisis
October 16, 2008 / 7:41 PM / 9 years ago

UPDATE 2-Deutsche Bank boards forego 08 bonuses after crisis

(Adds planned use of foregone bonuses, 2007 bonuses)

By Peter Dinkloh

FRANKFURT, Oct 16 (Reuters) - The top executives of Deutsche Bank AG (DBKGn.DE), Germany’s largest bank, will forego bonus payments for 2008, the first complete management board of a bank to do so in reaction to the global financial crisis.

Deutsche Bank Chief Executive Josef Ackermann decided to waive the extra payments for 2008, and the rest of the executive board will follow suit, a spokesman for Deutsche Bank said on Thursday.

The spokesman confirmed comments that Ackermann made in an interview with German paper Bild am Sonntag.

The money will be used to prop up wages of other bank employees whose salaries are hit harder by the effects of the finance crisis, Ackermann said in an interview in the Sunday edition of the paper that was released early.

Even though the 2008 payments for the four-member board have not yet been set, they would have been worth “millions of euros,” for Ackermann alone, despite the financial crisis, the chief told the paper.

In 2007, the management board received 28.9 million euros ($38.94 million) in bonus payments, compared with fixed payments of 4.3 million euros in the period.

The supervisory board -- which received 3.6 million euros in variable payments for 2007 compared with fixed payments worth 2.2 million euros -- will take the same step, according to a person with knowledge of the matter who declined to be identified.

Although it appeared to be the first instance of an entire management board giving up its bonus during the current crisis, other executives have taken similar steps.

Morgan Stanley (MS.N) CEO John Mack as well as former Bear Stearns CEO Jimmy Cayne and other top executives of the now-defunct brokerage have all declined bonuses. ($1=.7421 euro) (Editing by Gerald E. McCormick and Jeffrey Benkoe)

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