Deutsche Bank AG’s bonus pool is almost back to normal, even if little else is.
Germany’s largest lender is awarding its staff 2.2 billion euros ($2.71 billion) in variable compensation, according to the bank’s annual report for 2017 published on Friday. That approaches the level seen in 2015, when Deutsche Bank’s bonuses were broadly in line with its peers, and before Chief Executive Officer John Cryan began cutting back as the bank’s revenue shrank.
The investment bankers are set to receive slightly more than half the total bonus pool, with a variable compensation plan of 1.42 billion euros.
Cryan said in February that he would award “generous” bonuses to staunch defections seen the previous year, when he said the bank “took a risk” by cutting variable payouts by an unprecedented 80 percent. Cryan and the two co-heads of the investment bank, Marcus Schenck and Garth Ritchie, have vowed to regain market share lost in the wake of the bank’s confidence crisis about 18 months ago.
Cryan himself earned 3.4 million euros in total compensation. He announced at a conference last weekend that Deutsche Bank’s management board will waive its bonuses for a third year running, meaning the CEO of Europe’s biggest investment bank hasn’t seen a penny of variable compensation pay since he took the job in mid-2015.
“As the management board wanted to send a clear signal and ensure its own remuneration remains aligned to the bank’s net results, it decided to unanimously to waive its variable compensation,” Cryan wrote in a letter to shareholders. “In the interests of the bank, we could not repeat our previous decision not to pay any individual variable compensation to most of our senior staff for 2016.”
The bonus pool at Deutsche bank compares with about $3.3 billion at Zurich-based rival UBS, while Credit Suisse — which awarded 3.09 billion francs in bonuses in 2016 — is boosting the overall pool by about 3 percent for last year. French rival Natixis SA boosted its bonus pool by 10 percent, the bank said earlier this month.