Deutsche Bank cuts employee compensation

No Pot Of Gold

Ouch!

Deutsche Bank cut total compensation for employees at its investment bank 23% in the fourth quarter as a slide in revenue contributed to a loss for the period.

Bloomberg reports that the firm reduced compensation at the unit, called Corporate Banking and Securities, to $1.37bn from $1.77bn in the same period a year earlier, Deutsche Bank said in a written statement handed to reporters at a news conference in Frankfurt Wednesday.

Deutsche Bank is among banks lowering pay, firing staff and shrinking its balance sheet to lift profit and capital levels to meet stricter regulatory requirements and boost shareholder returns.

Co-CEO Anshu Jain, 51, has said he sees a risk of the bank losing talented employees if competitors don’t follow suit in cutting pay and stretching the period over which bonuses vest.

Deutsche Bank reported the cut in compensation as it published fourth-quarter earnings that showed a net loss of $1.3bn compared with a loss of $3.46bn a year earlier. 

To access the complete Bloomberg article hit the link below:

Deutsche Bank Cuts Investment Banker Compensation 23%

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