Wall Street bonuses have fallen off a cliff

Deutsche Bank slashed its bonus pool.

The firm announced in its 2015 annual report that the overall bonus pool was cut by 17%, totaling €2.4 billion ($2.7 billion) for 2015.

The bonus pool in the investment bank, known as the Corporate Banking & Securities division, was cut by 20%.

Deutsche Bank also confirmed that bonuses for the supervisory board were reduced to zero.

Deutsche Bank reported a $7.4 billion loss for 2015.

CEO John Cryan has spoken out before about the compensation culture at investment banks. In an October presentation, he outlined the “significant challenges” posed by an “inflexible compensation culture.”

In other words, he was saying that pay doesn’t move down as much as it should when revenues fall.

Deutsche is not the first bank to slash its 2015 bonus pool. Credit Suisse cut its 2015 bonus pool by 36% for traders and 11% overall.

New York State comptroller Thomas DiNapoli on Monday reported that the average 2015 Wall Street bonus in New York was down 9% from 2014. The total New York City finance bonus pool was down 6%.

In Deutsche Bank’s annual report, Cryan also warned that the first quarter has been “challenging” for banks.

“The beginning of 2016 has seen volatility in the world’s financial markets,” Cryan said.

“This has impacted the banking sector. The seasonally strong first quarter might turn out to be challenging for the sector overall. Deutsche Bank is no exception to this.”

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