Deutsche Bank Mulls Withholding Bonuses this Year
- Amid increasing pressure, Deutsche Bank is contemplating holding back paying bonuses to bankers and traders.
Deutsche Bank may hold off paying out bonuses to as many as 90 percent of bankers and traders, the New York Post has reported.
According to sources, only the top 10 percent of revenue generators are in line for a bonus for 2016 which will be paid out in instalments over the next five years.
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The bonus plans are still, however, under discussion and could be subject to change in the weeks ahead.
Last month, the German lender was hit hard when after lengthy negotiations with the US Department of Justice, it agreed in principle to a $7.2 billion deal with US authorities to resolve a probe into the alleged mis-selling of mortgage-backed securities.
Although it has been suggested that the Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term could affect the bank’s ability to pay bonuses, it has not been confirmed if the bank had used incentive compensation for the settlement.
This would not be the first time that John Cryan, Deutsche’s CEO, has cut bonuses since taking over in 2014. As recently as October, Cryan was said to be contemplating alternatives to traditional cash bonuses, part of a strategy to shore up investor confidence and augment existing capital buffers for the lender, as reported by Finance Magnates.
Last year, the bank cut the bonus pool by 11 percent and delayed paying its employees until March.
Deutsche Bank may hold off paying out bonuses to as many as 90 percent of bankers and traders, the New York Post has reported.
According to sources, only the top 10 percent of revenue generators are in line for a bonus for 2016 which will be paid out in instalments over the next five years.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
The bonus plans are still, however, under discussion and could be subject to change in the weeks ahead.
Last month, the German lender was hit hard when after lengthy negotiations with the US Department of Justice, it agreed in principle to a $7.2 billion deal with US authorities to resolve a probe into the alleged mis-selling of mortgage-backed securities.
Although it has been suggested that the Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term could affect the bank’s ability to pay bonuses, it has not been confirmed if the bank had used incentive compensation for the settlement.
This would not be the first time that John Cryan, Deutsche’s CEO, has cut bonuses since taking over in 2014. As recently as October, Cryan was said to be contemplating alternatives to traditional cash bonuses, part of a strategy to shore up investor confidence and augment existing capital buffers for the lender, as reported by Finance Magnates.
Last year, the bank cut the bonus pool by 11 percent and delayed paying its employees until March.