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Deutsche Bank Employees Feeling Unappreciated

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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."


Clawbacks Watch '12: Deutsche Bank

Those shares DB awarded you to make up for the ones you were leaving with your old employer? They're going to need those back. Deutsche Bank has become the first global bank to introduce rules allowing it to strip staff of bonuses they earned at previous employers in the latest crackdown on pay. The largest European lender by assets has significantly tightened its bonus rules this year, enabling it to take back unvested shares that newly hired senior staff received in exchange for stock earned at another bank. The German banks’ stricter bonus rules, which came into force in January, apply to all new senior hires considered to be involved in the bank’s risk-taking, a spokesman said. These more than 1,300 “regulated employees“ include managing directors in the corporate and investment bank and members of the management committees of all other units. One recruitment expert warned the rule could make it harder for Deutsche Bank to attract senior talent as the potential job candidates might not be willing to put at risk stock earned at a previous bank. Deutsche Bank Turns Screws On Bonuses [FT]

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What Sort Of Non-Cash Bonuses Should Deutsche Bank Pay Its Employees This Year?

Money is tight, so the bank's gotta think outside the box.