Deutsche Bank CEO Waives 2016 Bonus; Lender Axes Staff Incentives

Josh O'Neill, Assistant Editor, 22 March 2017


Earlier this week, Deutsche Bank published its annual report for 2016, which detailed how much it paid its staff for the year.

The chief executive of Germany's largest lender received no bonus for 2016, according to Deutsche Bank's annual report, following a tumultuous year during which it spent billions resolving legacy issues and underwent major restructures. 

John Cryan and the management board's 10 other members waived their bonuses last year, the bank said in its annual report. 

The lender said Cryan's total 2016 compensation was €3.8 million ($4.1 million). He received €1.9 million for 2015.

The Frankfurt-headquartered firm also slashed bonuses paid to its staff by 80 per cent after it suffered its second consecutive full-year loss. 

Total bonuses for 2016 will fall to €546 million from €2.4 billion in 2015.

Deutsche Bank first announced the drastic bonus cuts in January. The bank said they were necessary to help stabalise costs and to address significant losses that have hurt shareholders. 

Meanwhile, the lender is planning to raise around $8.4 billion of capital, partially list its asset management arm and revamp its business model in a bid to recover and reinvent itself

The bank says it will strengthen its position in its home market, while retaining a global reach in wealth management, asset management, and corporate and investment banking. 

The overhaul follows a net loss of $1.5 billion logged for last year and is part of a drive to draw a line under a string of scandals, litigation and compliance battles that have dented its balance sheets for the past five years. 

In January, Deutsche Bank reached 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 tsunami. 

And during the same month, the UK regulator, the Financial Conduct Authority, imposed its largest-ever fine for money laundering lapses on the group.

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