Yesterday it was reported that in 2007, executives with Munich Re subsidiary Ergo Versicherungsgruppe came up with the idea to throw a party for top performing sales executives at a bathhouse, featuring a bunch of prostitutes for their consumption. Perhaps having heard that gatherings like this can often devolve into chaos and confusion, or maybe it was just German fastidiousness, the organizers decided to color-code the event. Each hooker would wear an armband, with yellow indicating “available for sexual favors,” red indicating that she was a hostess and white indicating that she was “reserved for executives and top agents.” The girls also received a “stamp” following each visit to one of the curtained canopied beds, so party-goers could know how many times she’d been “frequented.” The story is just coming out now because supposedly very senior management only recently heard about it. Which apparently means that some people don’t keep up with the company newsletter, where a recounting of the event amazingly took place way back then. Read more »
Color-coded armband-organized. Read more »
The fellow pictured at left is 28 year-old German banker Steffen Korbach. He looks pretty happy because he’s got that cool shirt on and because the photo was taken prior to his totaling a £1.4million Pagani Zonda F Clubsport Roadster (only one of 25 in the world). Let’s hear his story. Read more »
Cuts going down circa now. Read more »
Germany said “auf Wiedersehen” to naked short selling, but it appears the ban is doing nothing but raising fears that Europe is in the midst of a financial crisis of its own. Traders are already clamoring to close out open positions, but who knows if the ban will really prevent a financial calamity. Read more »
What are they doing about it? Considering their options, that’s what.
According to people familiar with the matter, a number of employees — including some of the bank’s most talented and highest-paid people — are feeling that they aren’t being fairly compensated for their work in helping the bank weather the financial crisis without having to be bailed out by the German government.
Sources said the frustration has the potential for creating a real headache for CEO Josef Ackermann, who runs the risk of losing talent in the bank’s trading operation, which is considered the second-most profitable behind Goldman Sachs. One group of bond traders that has already left over pay includes Jerry Cudzil and David Malvern, who were part of a team that took over a book of business from Deutsche Bank’s former head of credit trading, Boaz Weinstein.
Apparently management thinks it’s paying its employees just fine but is the victim of “an unusual wave of poaching from rivals like Morgan Stanley, Citigroup and Credit Suisse.”
To: Group Internal Communications
Sent: 02/04/2010 04:15 AM
The German follows the English text / Die deutsche Übersetzung folgt im Anschluss
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.