Barclays, Deutsche Bank to cut pay up to 20 percent: sources
By Philipp Halstrick and Soyoung Kim
FRANKFURT/NEW YORK (Reuters) - Barclays (BARC.L: Quote) and Deutsche Bank (DBKGn.DE: Quote) will take a knife to bonuses for investment bankers in the coming weeks as they seek to tackle high costs, people familiar with the matter said.
Britain's Barclays is finalizing bonuses for last year and overall 2012 compensation for investment bankers will fall by between 10 percent and 20 percent on average, two sources said.
New Barclays CEO Antony Jenkins is revamping the bank and has pledged to cut pay to lift returns for investors.
Deutsche Bank's investment bankers will see bonuses for 2012 fall by 15-20 percent, resulting in a similar cut for overall pay for the year, two sources said.
The reduction follows a year of restructuring at Germany's flagship bank and pressure from regulators to clamp down on short-term rewards that can encourage risk taking.
Barclays and Deutsche Bank, regarded as Europe's most successful investment banks, declined to comment.
Banks around the world are taking a harder line on pay and are axing jobs as they get to grips with high costs and tougher rules that have made them less profitable than in the past.
European lenders are expected to cut more aggressively as their regulators apply more pressure. Continued...