Photo by Björn Láczay from Flickr
The chief executive of Deutsche Bank has confirmed that the 12 board members of the bank will not be given a bonus this year following the third annual loss of the firm.
Various reports had been emerging of a possible €1bn bonus payout, drawing in criticism after the bank reported last month that it had racked up a loss in 2017, with a massive hit from the tax reforms of the United States and a poor investment banking performance demonstrating a drag.
However, John Cryan said that while the bank had notched up some notable progress over the last year, he felt responsible for the fact that not all its goals had been achieved. So the executive management of the bank will forego a bonus once more.
However, Cryan informed a panel discussion with the editor of the Zeit Online of Germany at South by Southwest (SXSW) that the variable compensation for other employees will go ahead as planned.
Zeit reported Cryan as stating at SXSW: “The variable compensation won’t be as high as it was in 2015, but it will be significantly higher than in 2016.”
The pool of Deutsche Bank will be higher compared to the €546m (£485m) for 2016. However, it will be below the €2.4bn for 2015.
Cryan rejected that the upcoming total that is scheduled to be announced next Friday would be around €1bn, saying that he did not know where that figure had originated in recent reports of the media.
After posting a loss amounting to €500m last year, Deutsche Bank had been in the spotlight over the possible payout.
The boss of the bank said that he wants the resurgence of the bank to be faster, “but it also takes time to turn an oil tanker around.”
Last November, Cryan implied that tens of thousands of jobs could be slashed at the bank, as the firm works to align costs with a drop in revenues.
The news came after the announcement of a five-year restructuring plan in late 2015, which promised to cut 9,000 jobs.
And in February, reports emerged that the Deutsche Bank planned to slash up to 500 jobs globally at its investment bank as it looks to keep on top of its plan on cost-cutting.