Deutsche Bank pays out €2.2bn in bonuses for 2017 after third annual loss though bosses go without
Deutsche Bank’s bonus pool has bounced back, according to the bank’s annual report for 2017 published today.
The German lender is paying out €2.2bn (£1.9bn) in variable compensation to staff, nearing the level posted back in 2015 – and before new chief executive John Cryan began cost-cutting.
Last November, Cryan suggested that tens of thousands of jobs could be eliminated at the bank, as it works to align costs with a dip in revenues. That followed news of a five-year restructuring plan announced in late 2015.
The investment bankers are set to receive just over half the bonus pool, with variable compensation of €1.42bn. Last month, reports emerged that Deutsche Bank planned to cut up to 500 jobs globally at its investment bank as it looks to keep on top of cost-cutting plans.
Read more: Deutsche Bank bosses to go without bonuses after third annual loss
Cryan had confirmed last week that the 12 board members at the bank will go without bonuses for 2017 after the firm’s third annual loss.
The bank revealed last month it had racked up a loss last year, with a hefty hit from the US tax reforms and a poor investment banking performance proving a drag.
Cryan said while the bank had notched up some notable progress over the past year, he felt responsible for the fact not all goals had been achieved. So the bank’s executive management will forego a bonus once more.
But he confirmed at the time that variable compensation for other staff will go ahead as planned, saying it would not be as high as the €2.4bn for 2015, but it would be “significantly higher” than last year’s €546m.
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