Deutsche Bank to halve 2019 bonuses for board members

(This January 29 story corrects figures in third paragraph to millions, not billions)

FILE PHOTO: A statue is pictured next to the logo of Germany's Deutsche Bank in Frankfurt, Germany September 30, 2016. REUTERS/Kai Pfaffenbach/File Photo

FRANKFURT (Reuters) - Deutsche Bank's DBKGn.DE management board has decided to halve 2019 bonuses for individual board members as the bank faces a large 2019 loss, the lender said on Wednesday.

Detlef Polaschek, deputy chair of the bank’s supervisory board, said in a statement that the board had made the decision to waive individual performance-related remuneration to contribute to the bank’s turnaround.

Variable compensation for the board will total around 13 million euros ($14.42 million) in 2019, down from around 26 million euros in 2018.

“Both shareholder and employee representatives welcome this decision, which deserves respect,” Polaschek said.

The decision, first reported by German newspaper Handelsblatt, comes ahead of Deutsche Bank’s earnings report on Thursday.

Analysts expect the bank to post a 5 billion euro loss for 2019, its fifth consecutive annual loss, as the bank undergoes a costly overhaul.

After calling off merger talks with rival Commerzbank CBKG.DE last year, Deutsche Bank has embarked on a 7.4 billion euro restructuring plan to cut 18,000 jobs, close some businesses and overhaul management.

The bank told employees earlier this week it would delay salary raises by a few months.

Separately, Deutsche Bank’s supervisory board extended contracts for the bank’s finance chief, James von Moltke, and its chief risk officer, Stuart Lewis, a spokesman said on Wednesday, confirming a report in the Financial Times.

Reporting by Tom Sims; Editing by Riham Alkousaa and Elaine Hardcastle