Deutsche Bank Considering Alternatives To Paying Cash Bonus

Tyler Durden's picture

It has been at least a few weeks since Deutsche Bank appeared in the flashing red breaking news sections of newswires, with news that was - mostly - negative. And while the stock has since rebounded materially, wiping out all losses since the DOJ's $14 billion RMBS settlement leak, it appears that not everything is back to normal for the largest German lender. Because in what may be the worst news yet for DB's employees, moments ago Bloomberg reported that the German Bank is exploring "alternatives to paying bonuses in cash" as Chief Executive Officer John Cryan seeks to boost capital buffers.

According to Bloomberg, DB executives have discussed options including giving some bankers shares in the non-core unit instead of cash bonuses. Another idea under review is replacing the cash component with more Deutsche Bank stock.

The supervisory board may discuss the topic of variable pay at a meeting on Wednesday though no final decisions are expected, the people said, the day before it reports third-quarter earnings. The measures, if pursued in the coming months, would mostly impact the investment bank, the people said. The Frankfurt-based lender is still considering other alternatives, they said.

As Bloomberg adds, any bonus-related decision will depend on the size and timing of Deutsche Bank’s settlement with the U.S. Department of Justice over a probe into the the sale of faulty real-estate securities. Last year, Deutsche Bank awarded staff 2.4 billion euros ($2.6 billion) of bonuses for 2015, 1.45 billion euros of which was for the combined investment banking and trading unit. Of the 2.4 billion euros, 49 percent was deferred stock and cash while the remainder was paid out immediately.  It appears that DB wants to take the 49% number and make it bigger.

The idea echoes a similar move by Credit Suisse Group AG at the height of the financial crisis, when the Swiss firm used its most illiquid loans and bonds to pay employees’ year-end bonuses.

The report is comparable to a similar announcement made exactly one year ago, when DB announced it may slash bonuses by as much as one third. Since then, however, DB's aggressive cost cutting initative has made life for the bank's employees progressively more miserable. Since taking over in 2015, Cryan has suspended the dividend, reduced bonuses, cut risky assets, frozen new hiring and announced plans to shed some 9,000 jobs. The CEO has already said Deutsche Bank may fail to be profitable this year after posting the first annual loss since 2008 last year. Now, DB bankers may end up getting "paid" in some of the billions in impaired tanker loans, carried quietly on the bank's book, if not CDS or interest rate swaps. Those DB certainly has a lot of.

Should DB be successful with this significant shift in compensation strategy without leading to an exodus of workers, it will likely be attempted at other banks as the core problems facing Deutsche Bank, namely declining profitability, have now become systemic across the entire banking sector. Which is bad news for investment bankers everywhere.

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hedgeless_horseman's picture


Lottery tickets?

Signed David Hasselhoff posters?

Spiderman towels?

American Psycho's picture

A pat on the back followed by an "atta boy."

Looney's picture


Deutsche Bank Considering Alternatives To Paying Cash Bonus

1. Massive layoffs

2. Clawing back previous bonuses

3. Closing the joint and turning the lights off

Looney   ;-)

Killer the Buzzard's picture

I know all there is to know about the (John) Cryan game...  - Boy George

ThaBigPerm's picture

50/50 basket of Spiderman towels and equity

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) ThaBigPerm Oct 25, 2016 3:41 PM



The Management's picture


yippee kiyay's picture
yippee kiyay (not verified) The Management Oct 25, 2016 11:32 PM

"declining profitability, have now become systemic across the entire banking sector"

'cause of corruption & none is more corrupt than the FED.

lonnng's picture

they get $25 for every bounced check. i'm pissed.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) lonnng Oct 26, 2016 12:50 AM

If there is $0 in your account where do they get the $25 from?

philipat's picture

Hey yippee kiyay, previously mofio then santafe then Aristotle of Greece then Gargoyle then bleu then oops then lance-a-lot then Loftie then toro. You are a serial spammer and a serial pain in the ass. Might I politely suggest that you go fuck yourself? And get a life.

Would appreciate regular ZH contributors please take a moment to help me in my campaign against this idiot and report yippee kiyay to with a request for an IP block.

PS. You might have noticed that my attempt to expose you for what you are is always the same. That’s because your Spam is always the same (Using fake links to your BS site which has no connection to your comments; which are deliberately dramatic to mislead people into responding or clicking on the fake link) so it seems only fair that my exposure of your crap should also always be the same. An eye for an eye.


auricle's picture

All bonuses should be in the form of stock, payable in equal installments over ten years. If the company is legit, then you get paid. 

ebworthen's picture

Kaiser Sousa said:  "Feces???"

Exactly.  Stock options, or a bag of cow pies?  Take the cow pies!

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) ebworthen Oct 25, 2016 11:00 PM

More like "here, take this piece of paper." What will that paper be worth in the long run? Probably nothing. But hey, it's the thought that counts, right?

mkkby's picture

A stern warning to work harder next year.  Speed up the hamster wheel.

0b1knob's picture

This years bonus:

1.) Nail gun.   Three taps to the head.

2.) Hung under Blackfriars bridge with your pockets full of bricks.

3.) A set of steak knives and a "generous" severance package.

Take your pick.

PavlovPup's picture

+100 for GlengarryGlenross referance.


PATH's picture

Cut salaries and start at the TOP.

Curiously_Crazy's picture

"A pat on the back followed by an "atta boy.""

It sounds stupid, but a simple "Job well done mate" was all I ever wanted. Never expected a bonus and never got one (unless $200 that all employees got at the xmas party counts).

A word of recognition of your hard work goes a long way, then again I'm just a Civil Engineer cum Surveyor actually helping build shit so what would I know.

slaughterer's picture

DB is the biggest cesspool of abject losers in Germany right now.  

scraping_by's picture

The losers are ordinary Germans who have to live with the mass immigration of Muslims. These are just elites looking for their next scam.

o r c k's picture

And more buffering acreage at their New Zealand redoubts. (beyond the range of any sniper rifle.)

Raffie's picture

Pay the bonuses because might as well, the good ship Deutsche is going down and they all know it.

Even as we speak their stock is once again tanking.

It is just a matter of time before this main domino to falls and start the chain reaction.


GunnerySgtHartman's picture

A bottle of lube for the anal reaming those employees are going to get when DB finally goes kaput.  Flush DOOSHBANK!

gucciloafers's picture

(a) Instruct all employees eligible for bonuses to claim they voted for Hillary.

(b) Fly Madonna in for a week or two.

rosiescenario's picture

Options with a strike price equal to where it was this morning.....


CEO John Cryan should just do blowjobs instead of paying them cash bonuses, and keep them in FREE Blow too. Hookers, Blow, and 'Black Cards' are out at Deutsche. The new CEO will do the blowjobs, and provide all the Cocaine from now on until Deutsche can get back off the floor and on its ass, eh, JohnnyBOY.

dubaibubble's picture

I am sure top executives at DB will appreciate payment in whampum beads, plugs of tobacco and beaver pelts ;-)

HedgeJunkie's picture

Hell, no.  Each banker gets a top-of-the-line prostitute child and a fresh kilo of coke pulled directly from the CIA's vault.

Bastard's are so deviant they'd probably fuck the coke and blow the child.

ToSoft4Truth's picture

Hand-jobs in the stairwell? 

Kaiser Sousa's picture

Paper Silver & Gold???

Robert Trip's picture

An Iron Cross with Oak Leaves?

AlexCharting's picture

Dont deserve any carrots this year... bring the sticks. 

GunnerySgtHartman's picture

According to Bloomberg, DB executives have discussed options including giving some bankers shares in the non-core unit instead of cash bonuses. Another idea under review is replacing the cash component with more Deutsche Bank stock.

Oh brilliant, pay people with stock that will soon be worthless.  How many dot-coms did that and then went belly up?

Too bad the site f* is no longer up (other than a static page) - DB would be at the top of the list.  Flush DOOSHBANK.

BandGap's picture

Ha! I had a friend in the dotcom era that was paid partially in stock options. After two years he contacted me that he lost >$400K on two consecutive days.

Sure, they won't get rich on DB stock options, but think of the excitement this could generate!

Robert Trip's picture

A "Good Old Days" collection of photographs of the Fuhrer?

Robert Trip's picture

Cramer says "buy Deutsche Bank."

1980XLS's picture

Gift certificates for the Local "Rub-N-Tug"

Kirk2NCC1701's picture

Gold.  Held at the NY Fed.

You get a certificate to that claim.