In light of the bank’s performance and the USD 7.2 billion settlement with U.S. authorities, Deutsche bank announced that it will be making drastic cuts to bonuses employees will receive this year.
“Now that we have a clearer idea of the financial impact of the settlement with the US Department of Justice and our performance for the year, we feel that tough measures are unavoidable,” Deutsche Bank CEO John Cryan said in a message to employees.
Approximately 33% of the bank’s 100,000 employees will be impacted by the decision to reduce/eliminate bonuses.
The management board will not receive any bonus and staff with titles of VP, director and MD will not see a bonus but will get a retention package.
The retention package will be in the form of deferred share and cash awards, which will be cancelled if Deutsche Bank’s stock price does not increase by 30% over the coming 3 to 4 years.