They're already bracing for "one of the worst years ever" on bonuses-- which CEO John Cryan isn't gonna apologize for-- so why not take those expectations down one or two notches further, and then be pleasantly surprised when you receive a check for 4 euros and a free bratwurst from the cafeteria?
In any normal year, bankers at Deutsche Bank would be readying themselves to learn their bonuses now – Deutsche typically announces in early February. This, however, is not a normal year. CEO John Cryan declared his intention to delay bonuses by a month in a memo to employees last October. That’s unfortunate. Although shares in Deutsche Bank have risen 10% this morning, they’re still down 30% since January. Moreover, 2016 isn’t panning out as well as expected in terms of revenues. As Morgan Stanley’s head of trading, Edward Pick, said this week, ““The year started out OK, but it’s been a lot choppier since.” In other words, the longer 2016 goes on, the greater the incentive for banks that haven’t already announced bonuses to quietly cut their allocations. “The reality this year is that the earlier you were paid, the better,” says the head of one M&A search boutique. “As time goes on, numbers are being ground down as the market deteriorates.”
Delayed bonuses bode badly at Deutsche Bank [eFinancial]
Related: Deutsche Bank CEO Isn’t Gonna Apologize For Slashing Bonuses To Zero, Which He Still Thinks Is Too High; Bonus Watch ’16: Deutsche Bank Employees Bracing For Historically Bad Bonuses; Bonus Watch ’16: The 10 Most Senior People At Deutsche Bank Will Share A Bonus Pool Of Zilch/Zip/Nada;