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.
Archive for February 2010
Deutsche Bank Posts Fourth Straight Quarterly Profit (BW)
The Frankfurt-based bank had net income of 1.3 billion euros ($1.8 billion), or 2 euros a share, in the fourth quarter after a loss of 4.8 billion euros, or 8.71 euros, a year earlier, it said in a statement today. Earnings were bolstered by a tax benefit of 554 million euros. “Looking forward, we see a clear trend to recovery, and stabilization of financial markets, although the effects of the recent crisis will take time to work through,” Chief Executive Officer Josef Ackermann said in a statement.
Officials Blast AIG Bonuses (WSJ)
Both Treasury Secretary Timothy Geithner and the U.S. pay czar, Kenneth Feinberg, in separate appearances called the bonus contracts “outrageous” while noting the contracts predated the September 2008 government takeover of the insurer. So, you know, carry on.
Rivals Await Blankfein’s Bonus at Goldman Sachs (NYT)
According to the Times, JPMorgan is waiting to see what Blankein’s bonus will be, and gauging the reaction to it, before determining what Jamie Dimon will take home.
Billionaire Whistle Blower Loses $730 Million After Alleging Banker Fraud (Bloomberg)
“Nobody can guarantee you’re going to have success, but it’s another thing to be crooked,” says Jose Berardo, 65, who owns one of the world’s most-valuable private modern-art collections. “I want the money back that they took.”
Roubini: It Would Take A Crisis To Change Russia (CNBC)
“The problem in Russia is not going to change until there’s another shock like either a crisis or a collapse in oil prices or a political shift that’s going to lead to a radical change in this basic economic regime,” Roubini said.
The Hedge Fund Manager And His Frog (WSJ)
$$$ UBS employee charged with DUI while carrying cocked pistol [CTP]
$$$ Hill Country’s food eating challenge. I want one of you to do it. [Grub Street]
$$$ Bernanke, Quietly This Time, Takes Oath At Fed [NYT]
$$$ Galileo Chases ‘Pink Dollar’ With Gay, Lesbian Hedge Fund [FINalternatives]
$$$ Geithner Says Bank Fee Can Recoup AIG Bonuses [Reuters]
Seems like people in Chicago are a tad on edge lately, (no, not Kenny G’s fault) as the fight for Illinois’ Senate seat went up a notch today. Republicans greeted the Democratic primary winner, Alexi Giannoulias, for the Senate seat once held by Obama in Illinois with a video: “He’d make Tony Soprano Proud.”
Yes, Giannoulis once worked as VP at his family-owned bank, Bank of Broadway, which is under scrutiny. As of last week, it’s operating under FDIC’s consent order, meaning they have to raise a lot of capital ($19 million) for losses from mounting delinquent loans in order to stay in business. But does that a mobster make? You tell us.
For those of you whose firms don’t perform these procedures on-site and on the house: sex changes are now deductible (though boob jobs are not).
First off, because nobody leaves Lloyd and if you did, he’d find you. Second, because where you gonna go, ladies? You think it’s bad in here at 85B? You don’t have a clue what it’s like out there. Lloyd could do unspeakable things to you with a fresh set of whiteboard markers, make you service the golden scrots for trade approval and choke you out with his giant squid and you know what you’d say, were you not focusing on trying to breathe? You’d say thank you, LB, can I have another. Because the alternative is worse, at least according to Sandler O’Neill analyst Jeff Harte, who recently met with the GS brass:
Macquarie Bank Miranda Kerr Enthusiast On A Time Out ‘Til Superiors Decide What To Do With Him
By Bess Levin
So! It seems that the Aussies at Macquarie were not as opened-minded as one would’ve hoped. David Kiely, the client investment manager who took a few ganders at Miranda Kerr yesterday while his floor was being filmed, has been “waiting at home” since the “incident” while his bosses, who “take matters such as the unacceptable use of technology extremely seriously,” deal with the matter internally.
Listen to me. No, really listen. A lot of banks and CEOs talk about change. They swear things are going to be different this time, they promise thing are going to be better and they all say they mean it. But you and I know they’re all blowing smoke up our asses. You know how I know Vikram and Citi are deadly serious about making it work with Citi, and not just making empty promises? They’ve started a blog. Here, at New Citi, every single day, or until they gets blogger fatigue, we’ll be able to follow C’s progress toward achieving Pandito’s goal of becoming “the best company in the world, bar none.”
And lest you think this is some sort of corporate crap, think again: this blog is so real that they’re letting you leave comments. In fact, go leave one right now. Vikram is so excited about all this that he’s kicked off his inaugural post with a video in which he gets to his favorite word (“globality”). Take a peek, and then tell us what sort of posts you’d be interested in seeing. Pictures of VP’s lunch? Daily outfits? Next-day recaps and thoughts on Lost? Favorite YouTube videos of the week? Late night confessions? Guest posts by The Prince? Dish on other CEO’s (don’t even get Pandles started on what Lloyd wore the last time they were in Washington. Fashion failll)? Everyone wants this thing to be great and to that end, is a name change in order? My vote: Vicki In The Citi. Think about it.
According to Dick Bove, James Gorman, noted bro of John Mack, does not want to follow in the footsteps of his predecessor but rather another CEO. In his latest report on Morgan Stanley, the analyst says Gorman is “clearly taking the approach that Jamie Dimon adopted in rebuilding his bank.”
He is focusing on the “nuts and bolts” of the businesses and attempting to improve each activity without making any sweeping visionary commitments.
