Reuters reports that, according to its sources, Deutsche Bank is to defer all 2011 bonus payouts over 200,000 euros ($264,000). Any employee who bags a bonus of $264,000 or less will receive half in cash and half in stock, which can be sold in August. Any bonus award amounts over the threshold will be paid out in restricted stock which vests over three years.
In the meantime, Dow Jones Newswires reports that Goldman Sachs and Morgan Stanley are to clarifiy their policy on bonus clawbacks. Both firms will come out and confirm that their policies relate not only to those staff who engage in risk-taking activities, but also to those who manage or supervise them.
Finally, UBS Investment Bank head Carsten Kengeter is said to have had a quiet word with Group CEO Sergio Ermotti soon after that $2.3bn trading fiasco and confirmed that he wouldn't be accepting any bonus for 2011. A pretty easy decision to make, that one, especially as many feel that Kengeter was fortunate to remain in his job after what happened on the trading floor.
High Finance: A Wall Street Novel
50 Shades of Embarrassing
