Bloomberg reports that Deutsche Bank cut pay for employees at the corporate and investment bank by 15% in 2011 after income at the division plunged.
According to firm filings, the bank set aside $6.7bn for compensation and benefits compared with $7.75bn in 2010, according to company filings today. That was enough to pay an average of $436,267 to the 15,184 employees at the division, which includes transaction banking, from $496,406 a year earlier.
Overall, the bank's bonus pool fell 17%. Deutsche CEO Josef Ackermann said in a speech in Frankfurt Thursday that the cash component of bonuses were lowered by 37%, and the ratio of deferred compensation is now up to 61%.
That compares to:
Goldman Sachs
The firm reduced its compensation and benefits expense 21% to $12.2bn in 2011, enough to provide $367,057 to each of its 33,300 employees. That’s down from $430,700 for each of the 35,700 workers at the end of 2010.
Overall compensation rose to 42.4% of revenue in 2011 from 40.5% in 2010.
JPMorgan
The firm cut investment bank employee compensation 9% to $8.88bn in 2011, enough to give each of the unit’s 25,999 employees an average of $341,552. The division set aside $9.7bn billion in 2010, or $369,651 for each of the 26,314 staff then on the payroll.
The unit's 2011 comp ratio came in at 34%, down from 37% in 2010.
Morgan Stanley
The firm set aside $7.2bn to pay employees at its investment banking division in 2011, 3% more than a year earlier.
Total compensation at the institutional-securities unit was 42% of revenue, down from 43% in 2010 and from 56% in 2009.
The firm 's brokerage division, which employed 17,156 financial advisers at year-end, set aside $8.35bn for pay, 6% more than in 2010. The unit’s compensation cost, which is set by a fixed grid for many employees, was 62% of its revenue - unchanged from a year earlier.
Companywide compensation and benefits at Morgan Stanley rose 3% to $16.4bn as revenue climbed at the same rate. That was enough to pay each of the firm’s 61,899 employees $264,996 on average for the year, more than the $254,596 it set aside for each of the 62,542 employees at the end of 2010.
Morgan Stanley will capped 2011 cash bonuses, for all employees who earned in excess of $250,000 in total comp, to $125,000. The deferred cash becomes payable in two equal installments in December 2012, and December 2013. 'Clawback' provisions will also relate to the deferred cash bonuses.
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