• 04 Feb 2010 at 8:50 AM
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Bonus Watch ‘10: Zee Germans Will Be Clawing Back

By Bess Levin

To: Group Internal Communications
Sent: 02/04/2010 04:15 AM
Subject: Compensation
The German follows the English text / Die deutsche Übersetzung folgt im Anschluss
Dear Colleagues
Our industry is still facing tremendous public debate in the aftermath of the disruptions caused by the financial crisis, particularly in regard to compensation principles, bonus payments, banking taxation and both the current and future regulatory landscape.
Against this backdrop, we at Deutsche Bank have been engaging with politicians and regulators in public and private. On the specifics of compensation, we were early endorsers of the G20 Finance Ministers / FSB principles on compensation and announced that we would apply them, where we were not already doing so, to the 2009 compensation cycle. Thus, we are positioned as an industry leader and among a set of internationally successful banks who responsibly endorse the long term sustainability of their businesses and the industry.
Today we want to communicate the key elements of our compensation structure. These are:
* We will continue to pay our people competitively based on business performance, adjusted for capital and risk.
* A significant proportion of compensation will, where applicable, be deferred. Deferred compensation will be a combination of restricted equity awards (75%) and restricted incentive awards (25%).
* The restricted equity award will vest in nine equal instalments over 3¾ years, while the restricted incentive award will vest in three equal instalments over three years.
* All restricted equity and restricted incentive awards will continue to be subject to claw-back in the case of policy/regulatory breach.
* All restricted incentive awards will be subject to claw-back in the event of significant financial impairment.

* All restricted incentive awards for Managing Directors will also be subject to a claw-back linked to future multi-year financial performance of DB.
* For certain senior employees, there will be a shift in pay from variable compensation (bonus) to fixed pay (salary) starting this year, in order to achieve a more balanced distribution of their total compensation. Any change to this ‘pay mix’ will not be automatic and will only apply in those cases where an employee’s current mix of pay is not appropriate to their function, seniority and performance.
* Employees who are not eligible to be considered for the above-referenced pay mix review will be eligible for a salary review as normal.
You will find out more about these changes next week on Tuesday 9 February, when individual compensation details will be communicated to you. At that time your Manager will provide you with more details about how these changes may affect you.
We strongly believe that our actions demonstrate that Deutsche Bank’s compensation strategy is based on sound principles, remains competitive and appropriately recognises and rewards exceptional performance.
Regards
Josef Ackermann
Hermann-Josef Lamberti

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  1. 1
    Posted by guest | February 4, 2010 at 8:54 AM

    I’d rather a german claw than the queen’s shiv up my ass.
    -rbs rainmaker

  2. 2
    Posted by guest | February 4, 2010 at 8:58 AM

    yes! we can finally buy that new boflex for our ues apt/gym!
    -Brian Peganoff
    Dungeon Master

  3. 3
    Posted by guest | February 4, 2010 at 8:59 AM

    I think you meant that you would rather have a queen’s claw on your back than a German’s shiv up your ass.
    Examine your motives (and proclivities you homo)

  4. 4
    Posted by guest | February 4, 2010 at 9:02 AM

    @3 no, I meant to say what I said. You’d understand the german torture is preferable if you worked at RBS.
    -1

  5. 5
    Posted by guest | February 4, 2010 at 9:03 AM

    @2 nice

  6. 6
    Posted by guest | February 4, 2010 at 9:03 AM

    I would rather it just be a bunch of markers rather than a shiv or a claw.
    Jing Piang

  7. 7
    Posted by turd_ferguson | February 4, 2010 at 9:32 AM

    Scheisse Mein Fuhrer!!

  8. 8
    Posted by guest | February 4, 2010 at 9:42 AM

    @6 dirty bird.
    -HP

  9. 9
    Posted by guest | February 4, 2010 at 9:45 AM

    Out of curiousity, will we be getting the numbers for LB’s minions?

  10. 10
    Posted by guest | February 4, 2010 at 9:48 AM

    @2 I see what you did there.

  11. 11
    Posted by guest | February 4, 2010 at 9:52 AM

    The Craw? Not Craw! Craw!

  12. 12
    Posted by guest | February 4, 2010 at 10:23 AM

    Josef Ackermann: The fact that you are a Managing Director is not germane to the situation.
    MD: The god damn Germans got nothin’ to do with it.

  13. 13
    Posted by guest | February 4, 2010 at 10:27 AM

    I want to have Tim Tebow’s abortion.
    Ping Jiang

  14. 14
    Posted by guest | February 4, 2010 at 10:38 AM

    Comment removed by moderator.

  15. 15
    Posted by MooseFister | February 4, 2010 at 10:43 AM

    @11 = very amusing Mr. Smart
    http://www.youtube.com/watch?v=ftgAG3Vnif8

  16. 16
    Posted by guest | February 4, 2010 at 10:48 AM

    13 ftw

  17. 17
    Posted by guest | February 4, 2010 at 10:57 AM

    @14 So, uhhhh….what group do you think is responsible for the financial crisis?

  18. 18
    Posted by guest | February 4, 2010 at 11:08 AM

    @17 Kajagoogoo?
    -clearly not 14

  19. 19
    Posted by guest | February 4, 2010 at 11:10 AM

    Where is the Youtube parody, “Hitler is told his bonus is being clawed back”?

  20. 20
    Posted by Pfluger the Barbarian | February 4, 2010 at 11:18 AM

    Wansin!!! Unverschämt!

  21. 21
    Posted by guest | February 4, 2010 at 3:42 PM

    There’s a new dirge to be written to the tune of this old ditty:
    http://www.youtube.com/watch?v=KwQFNbNXek8
    Ich hatt’ eine Bonuszahlung,
    Einen bessern findst du nit…

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