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Deutsche Bank: More income millionaires below the board again

2021-03-12T16:55:42.834Z


Barely in the black, the Deutsche Bank rewards its investment bankers with a bonus blessing. The board of directors is holding back a bit, but the number of people earning millions is increasing significantly.


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The board of directors is taking a step backwards: Fabrizio Campelli

(Chief Transformation Officer),

Christiana Riley

(Regional CEO for America),

Christian Sewing

(Chairman of the Board) and

James von Moltke

(CFO) at Deutsche Bank's annual press conference in January 2020

Photo: Rainer Unkel / imago images

Deutsche Bank pays out more bonus payments after its first net profit since 2014.

Deutsche Bank boss

Christian Sewing

(50) can look forward to a salary increase: In 2020, his total remuneration increased by almost half to 7.4 million euros, according to the annual report published on Friday.

The bonuses for all employees of Germany's largest financial institution rose by 29 percent to 1.9 billion euros, despite the shedding of a few thousand jobs, as the Frankfurt Dax group announced on Friday when it published its annual report.

Deutsche Bank justified the payments with the "significantly better financial results and the goals achieved" in 2020 and with the fact that it wanted to "keep top performers".

The group had long struggled with the banking supervision of the European Central Bank over the bonus plans and had to withdraw proposals for an even larger bonus pool.

In total, Deutsche Bank paid its board members

50 million

euros (salaries including bonuses) after 36 million euros in the previous year.

However, the number of board members increased to ten out of eight members on average over the year.

Sewing and his colleagues would actually have been entitled to 4.6 million euros more.

Due to the macroeconomic consequences of the corona pandemic, however, certain salary components have been reduced.

With a view to the macroeconomic consequences of the corona pandemic, the board of directors wants to set an example: The management team is said to be foregoing one twelfth of its annual salary.

Supervisory board chairman

Paul Achleitner

(64) joins this approach, it said.

Many employees in the highest management levels also forego payment of one month's salary.

Bonuses increase the number of income millionaires

Because of the higher bonuses, there were also more income millionaires below the board of directors in the money house.

In 2020, 684 (after 583 in the previous year) Deutschbankers earned an annual salary of more than one million euros.

The best-paid employee received between ten and eleven million euros.

Meanwhile, the bonuses in the group are distributed among fewer employees overall.

The number of full-time positions at Deutsche Bank fell by 2,938 to 84,659 worldwide in the past year.

The Verdi union was criticized for the bonus increase.

"It does not fit at all that for the top earners at Deutsche Bank, such as the investment bankers, wages are increased, while there should be almost nothing for employees who are at the lower end of the salary structure," said Verdi representative

Jan Duschck

, who sits on the bank's supervisory board.

Call center employees at the bank have been on strike for a wage increase and a 13th month salary for weeks.

According to media reports, the high bonus payments also met resistance from the banking supervisory authorities of the European Central Bank.

According to the plan, more than two billion euros were initially planned at Deutsche Bank.

Decline in earnings expected

In 2020, the Frankfurt-based company made a profit for the first time in six years - the bottom line was a surplus of 113 million euros, despite the burdens of the corona pandemic.

The institute benefited above all from a boom in investment banking.

The division had been severely trimmed in the course of the group restructuring.

In the past year, it delivered practically the entire profit of the core bank before taxes, i.e. the business areas without the Group's own waste disposal unit.

A year earlier, the bank had made a loss of 5.7 billion euros due to the renovation.

After years of billions in losses, Sewing gave Deutsche Bank a new strategy in the summer of 2019.

Entire divisions such as share trading and the hedge fund business have been closed, and the focus will be more on corporate and private customers in the future.

18,000 jobs will be cut worldwide.

The bank aims to increase its return on equity after taxes to eight percent by 2022.

Five billion euros will then be distributed to the shareholders.

Group earnings this year are expected to be below the 24 billion euros from 2020.

Sewing admitted that this was mainly due to declining income in investment banking.

At the same time, however, risk provisioning in the lending business will decrease slightly.

Deutsche Bank is aiming for a profit again in 2021.

cs / Reuters, dpa-afx, AFP

Source: spiegel

All news articles on 2021-03-12

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