FRANKFURT (Reuters) - Bonus cuts at German flagship lender Deutsche Bank (DBKGn.DE), announced in January, have so far not led to a mass exodus of employees, one of its board members told a German weekly newspaper.
“Fluctuation is normal and within the usual boundaries and was even lower in January compared to the previous year,” Chief Administrative Officer Karl von Rohr told Frankfurter Allgemeine Sonntagszeitung (FAS) when asked if the bank had lost staff.
The cuts will see the bank’s bonus pool shrink by about 80 percent and hit about a quarter of Deutsche’s roughly 100,000 staff.
Carmaker Volkswagen (VOWG_p.DE) on Friday announced major changes to executive pay with a cap on earnings, looking to quell widespread anger over bonuses paid even as the carmaker suffered record losses after the emissions scandal.
Deutsche Bank, Germany’s flagship lender, posted a net loss of 1.9 billion euros ($2.01 billion) in the final quarter of 2016 as legal costs for past misdeeds weighed heavily on results.
While Deutsche Bank has drawn a line under some major legal headaches, earmarking 4.7 billion of total litigation reserves of 7.6 billion euros for settlements such as over the sale of toxic mortgages and sham Russian trades, it is not yet out of the woods.
About 20 large cases account for 90 percent of the bank’s legal provisions, von Rohr said, adding half of those had either been concluded already or were about to be completed. “The rest will hopefully be largely dealt with by the end of the year.”
Reporting by Christoph Steitz; Editing by Elaine Hardcastle