Published April 17, 2013
FRANKFURT – Deutsche Bank AG's
Under the terms of the lender's compensation system for this year, Anshu Jain and Juergen Fitschen's bonuses will be capped at 7.55 million euros and their fixed salaries at 2.3 million.
The move comes after European Union lawmakers last month moved to introduce a pan-European rule to cap bonuses and as Germany gears up for national elections in September.
Jain has already agreed to waive part of his bonus for 2012, mirroring a trend among high-profile executives to forego payments in an attempt to mute public criticism of the banking industry, which is being blamed for causing the economic crisis.
Deutsche Bank said last month it had docked pay after a hike in legal provisions prompted it to adjust its 2012 earnings downward.
For 2012, co-chief executives Juergen Fitschen and Jain were each awarded 4.9 million euros, while for 2011 Jain received 9.8 million and Fitschen 4.2 million in variable and fixed pay and long-term incentives.
Deutsche's move to show it has a grip on pay mirrors a trend seen elsewhere in Germany. Volkswagen Chief Executive Martin Winterkorn will be paid a total of 14.5 million euros for 2012 in fixed salary, bonuses and incentives, compared with 17.5 million a year earlier.
In February, Germany's second largest lender Commerzbank said Chief Executive Martin Blessing is to waive his 700,000 euro bonus for 2012, as he warned investors not to expect a dividend from the company.
Politicians and regulators across the globe have forced an overhaul of bank pay in an attempt to discourage short-term risk-taking, mainly by deferring payouts and by introducing claw-back options.
In the wake of the financial crisis, massive central bank intervention into markets has helped boost bank earnings, in part thanks to measures including looser collateral rules and fiscal stimulus efforts.
(Editing by David Holmes)