24 Wednesday, May 22, 2019 16:55

Deutsche Bank pay is driving a wedge between veterans on 'Mickey Mouse money' and a slew of better-paid new hires — and a $62 million bonus for the board adds extra sting

Grumbling about pay is nothing new — during bonus season its practically an annual tradition among bankers. But this year, bonus time at Deutsche Bank had an extra sting. Deutsche Bank has been splashing out on big new hires while giving a massive pay bump to the board, all while the stock is plunging to record lows.

Its causing fury among veteran managers who saw their pay slump. Staff saw their bonuses slump 14% from the year before, senior staff are saying, a source told Business Insider. Yet the 13-member management board got a whopping 87% pay bump, its first in four years, totaling €55.7 million ($62 million).

The banks chairman is under fire, and may even reportedly face a no-confidence vote at a key annual meeting on Thursday. Another factor fueling fury among the older hands are new hires at the bank, our source said. People are always jealous of the new guys that come in on big salaries, the person said.

Deutsche Banks slumping stock price — down almost 40% in the last year and hitting record lows this week — is another big issue. Staff packages for material risk takers at the bank include a fixed amount of deferred stock, meaning they cant cash it out right away. In Deutsche Banks case, that means for some employees, 25% of their total pay is tracking the shares lower and lower with each new failed deal or money-laundering scandal.

Theyre calling it Monopoly money or Mickey Mouse money, the source said of managing directors in Europe complaining about their pay. They would never willingly buy the stock. Deutsche Bank CEO Christian Sewing.

Reuters/Kai Pfaffenbach Splashing out on big hires Deutsche Bank has been hiring. Edvin Petersson, who left Deutsche Bank to become an MD at Barclays, is returning to the German bank to head the debt sales business in northern Europe.

Elena Isaico is also returning to her former employer to run emerging-market sales after a stint as an MD at Barclays. Deutsche Bank also hired Kevin Burke, formerly at Standard Chartered, to lead its Asia Pacific institutional and Treasury units. The German bank reportedly has a reputation for paying to keep stars who try to leave.

The website eFinancialCareers said back in 2018 that headhunters trying to poach from Deutsche Bank have faced counter buybacks of up to 50% or more from the bank. And if they do leave? Im sure they had to pay a premium to get these guys to come back, the person told Business Insider. €250,000 extra pay per month A particular sore point: The bank revealed in March that investment banking chief Garth Ritchie has been pocketing an extra €250,000 ($279,000) per month since December 2017, to handle the additional.


News Code: 173826  |  Insider
All news have been gathered by RoboNewser Crawler

Related News