Deutsche Bank slashes bonuses after hefty US fine
Deutsche Bank's top earners will have their bonuses slashed as the lender grapples with a hefty fine from the United States and the financial fallout of low interest rates.
In a letter to staff, chief executive John Cryan said "tough measures are unavoidable" as it moves to shore up performance and pay a 7.2 billion US dollar (£5.8 billion) settlement with American authorities following a probe into its sale of mortgage-backed securities during the financial crisis.
Germany's biggest lender said staff with the title of vice president, director or managing director will have their individual bonuses scrapped for 2016, but they will still receive a group bonus for the year.
Mr Cryan told staff on Wednesday that Deutsche Bank's management board had also waived its bonuses for 2016.
"Now that we have a clearer idea of the financial impact of the settlement with the US Department of Justice and our performance for the year, we feel that tough measures are unavoidable," he said.
"This is especially true at a time when thousands of jobs are being cut and our shareholders are not receiving an annual dividend.
"The management board has therefore decided to substantially limit bonus payments for 2016."
The move means around 25,000 of the bank's 100,000 staff - including workers in London - will face a sharp cut to their pay awards.
However, around 75% of its workforce will suffer little or no impact as a result of the decision.
Deutsche Bank's shares on Germany's Xetra Dax were up 0.2% following the announcement.