Pardon us while we break our arm patting ourself on the back...
You heard it here first! Deutsche Bank will not be handing out bonuses to senior people this year after paying out $7.2 billion to the DoJ to settle it's rather batshit behavior during the mortgage crisis.
Deutsche Bank AG scrapped the bonuses of its top executives for a second straight year and slashed variable compensation for other senior employees, as Germany’s largest lender tries to shore up capital that’s been eroded by low interest rates and legal expenses.
The measures, announced in a memo to employees Wednesday that was signed by the members of the management board, will affect about a quarter of employees, including vice presidents, directors and managing directors. A “limited number” of employees in crucial positions will receive a special long-term incentive, partly in stock, that will be deferred for as long as six years, according to the memo.
It's brave of John Cryan to forgo the carrot for the stick this year, especially after all the other crap that Deutsche bankers have gone through in the last 12 months, but it does make some sense when you consider that he could take the internal hit now and hope to go Full James Gorman by pulling a rabbit out of a hat like The Morgan Stanley CEO seems to have done at the end of 2016.
That said, it's a dark day at Deutsche, brightened only by the fact that WE WERE SO RIGHT!