Deutsche Bank delays raises to fixed pay after changing annual date for pay adjustments

FAN Editor
A woman walks past a Deutsche Bank office in London
FILE PHOTO: A woman walks past a Deutsche Bank office in London, Britain July 8, 2019. REUTERS/Simon Dawson

January 28, 2020

(Reuters) – Deutsche Bank AG <DBKGn.DE> has delayed raises to fixed pay compensation at the German bank by three months until after April 1, citing the need to further improve cost management, according to a memo seen by Reuters on Tuesday.

“After thorough discussions, we on the Management Board have taken the decision that, from 2020, any fixed pay adjustments in connection with the annual review or promotion process will be effective April 1 (not retroactively effective as of January 1),” Christian Sewing, the bank’s chief executive, wrote in the memo.

The memo added that the bank will continue to review fixed pay at regular intervals and make adjustments as necessary. It implied the annual effective date for pay adjustments will be pushed back permanently to April 1.

“As in previous years, variable and fixed pay compensation will be communicated in early March. Additionally, promotions will be brought in line and also become effective April 1 and will also be communicated in early March”, Sewing wrote.

The bank has been reeling from a series of scandals and years of losses more than a decade after the onset of the global financial crisis.

It is also in the midst of a major overhaul. After failing to merge with rival Commerzbank <CBKG.DE> last year, it announced plans to close some businesses, revamp its management board, and cut its workforce by 18,000 employees.

(Reporting by Tom Sims in Frankfurt and Kanishka Singh in Bengaluru; Editing by Matthew Lewis)

Free America Network Articles

Leave a Reply

Next Post

Starbucks expects impact from coronavirus in second quarter

FILE PHOTO: A waitress prepares a beverage at a branch of Starbucks coffee in Tokyo, Japan, August 13, 2018. REUTERS/Kim Kyung-Hoon/File Photo January 28, 2020 (Reuters) – Starbucks Corp <SBUX.O> said on Tuesday the outbreak of a new coronavirus in China would have a material impact on its second-quarter results. […]