Deutsche Bank is finally closing in on a settlement with a group of ex-executives, which will look to reconcile nearly 50 percent of bonuses presently owed. The deal will look to forgo approximately half of outstanding bonuses to eleven former Deutsche Bank executives as part of an immunity plea that represents a finality for both sides.
Last month, Finance Magnates reported that Deutsche Bank was looking to close the chapter on the issue of unpaid bonuses to a group of former senior officials. The deal would also prevent any legal measures against the individuals, making them immune to any damage claims or recourse – fast-forwarding to the present, both sides are finally closing in on a solution.
The deal is currently being brokered by Deutsche Bank’s Supervisory Board and nearing a mutual solution, according to a recent Bloomberg report. Preliminary details suggest that the former executives would only receive 50 percent of owed bonuses for immunity. The latest update follows on the heels of the group’s annual general meeting, which hinted that a deal was imminent in the upcoming months to finally eliminate loose ends.
It is presently unknown what the total amount of outstanding bonuses is, however Anshu Jain, one of the lender’s former co-CEOs, is presently owed a sum of $8.5 million, along with 161,029 share awards. Another ex-CEO Josef Ackermann still is owed $5.41 million in cash payments and 124,160 share awards, having been disclosed at a recent shareholder meeting.
In the midst of a widespread restructuring process, Deutsche Bank is looking for cash and also a way to help close the door on an ongoing spat with former executives. As recently as April this year, the group announced a new cash call in a bid to help further drive its restructuring process, a strategy pioneered by CEO John Cryan that seems to have helped in the short-term.
However, Deutsche Bank’s deal comes with a cost, which will eliminate any ability to pursue legal action or damage claims against the group of former executives. The past few years has seen Deutsche Bank lose millions in fines relegated to LIBOR violations and FX rigging scandals. Several cases against Deutsche Bank remain ongoing though it is also unclear if these former executives maintain any role in active investigations against the lender.
Finance Magnates will update the legal situation as it continues to develop.