It looks like Deutsche Bank could cut bonuses by 500 million euros ($US566 million) this year.
That’s according to Bloomberg’s Ambereen Choudhury and Nicholas Comfort, who report the cost-cutting, which could amount to one third of last year’s bonus pool, will likely target fixed-income traders.
Expecting a third-quarter loss of 6.2 billion euros ($US7 billion), Deutsche Bank announced a massive write-down in early October.
In June, the bank’s board purged its leadership and appointed a new CEO, John Cryan.
Then, on Sunday, the bank announced a dramatic structural overhaul.
Among other things, the bank will replace the corporate banking and securities division with two units: corporate and investment banking and global markets.
A number of executives who were close with ex-CEO Anshu Jain will also leave the bank.
And now, it looks like the bonus pool is next to take a hit.
Last year, Deutsche Bank paid out 2.71 billion euros in bonuses, down from 2013’s 3.16 billion euros, according to Bloomberg.
Final decisions on bonuses will be made in a couple of months.
Here‘s the Bloomberg article.