Deutsche Bank’s Top Management Forfeits Part of Their Bonuses

Deutsche Bank’s Top Management Forfeits Part of Their Bonuses

(Bloomberg) -- The management board of Deutsche Bank AG has offered to forfeit part of their 2019 bonus as the lender is set to post a multibillion-euro loss.

Board members under Chief Executive Officer Christian Sewing are willing to give up the component of their bonus that reflects individual performance, a spokeswoman said by phone. They would still get awards for group performance and some other benefits that will total about 13.3 million euros ($14.6 million), she said. That includes about 2 million euros for three executives who left the top management body last year.

Earlier: Deutsche Bank Postpones This Year’s Annual Raises Until April 1

Bloomberg News reported last week that the lender was nearing a decision about significant cuts to management bonuses. The board’s offer was reported earlier today by Handelsblatt.

Sewing and Chairman Paul Achleitner have to balance their wish to reward executives for their work in 2019 and the risk of a public backlash against pay ahead of an annual loss that analysts say could reach about 5 billion euros. The bank awarded top executives 25.8 million euros in bonuses last year.

The bank has decided to cut the overall bonus pool by about 20%, Bloomberg has reported, with discretionary pay at the investment bank set to decrease by about 30%. The reduction, largely decided late last year, came amid intense scrutiny from the European Central Bank, three people briefed on the matter said. The ECB wants to ensure Deutsche Bank can afford to pay bonuses without pushing its regulatory capital below a level seen as inadequate, the people said.

©2020 Bloomberg L.P.

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