Germany's largest lender is rumoured to be developing a new bonus system for its top level executives, just weeks after it announced it is slashing staff bonuses in a bid to drive profit margins up.

Deutsche Bank declined to comment on media reports that it is planning an overhaul of its staff bonus system, just weeks after the bank decided to slash bonuses in a bid to soften the blow dealt by recent litigation bills.

Germany's largest lender is working on a revamped, more transparent and less complicated bonus system for its top executives, according to media reports citing anonymous sources. 

Last month, the Frankfurt-headquartered firm's management board decided to waive its own bonuses for 2016 as it tries to turn a profit and begin recovering from a $7.2 billion settlement with the US Department of Justice over its sale of toxic mortgage-backed securities in the run-up to the 2008 financial crisis. Earlier this week, Deutsche Bank also agreed to pay $630 million in penalties for facilitating $10 billion in sham Russian trades.