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.
The bonus plans are still, however, under discussion and could be subject to change in the weeks ahead.
What to Look for in a Liquidity ProviderGo to article >>
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 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.