For the second year in a row, Deutsche Bank executives faced shareholder anger over their pay packets.
Shareholders voted down proposals to pay Deutsche Bank managers a bonus based on how well their division performs within the group. That’s on top of bonuses derived from how well they perform personally and how well the bank performs.
The scheme would see investment banking head Jeffrey Urwin earning as much as €13.2 million (£10.1 million, $14.8 million) in 2016.
The bank lost a record €6.8 billion in 2015 and has paid more than €12 billion in fines and litigation costs since 2012.
And investors showed their discontent with the bank’s performance at a meeting in Frankfurt on Thursday, with 51.9% voting to reject the pay plan.
Hermes EOS, which represents institutional investors, called on shareholders to reject the plans a day before the vote.
Hermes EOS co-head Dr Hans-Christoph Hirt said the group is “concerned about the significant increases in base salaries in recent years, the apparent lack of consultation on the proposed changes to the management board remuneration system, the inadequate transparency in relation to performance criteria and targets of the proposed so-called Division Performance Award, as well as the high level of discretion of the supervisory board with regard to variable remuneration.”
It is the second time in two years that Deutsche Bank has encountered investor criticism over pay. In 2015, 39% of investors rejected the pay packet of Anshu Jain, current CEO John Cryan’s predecessor, for the bank’s performance in 2014.
Since then, the price of Deutsche Bank shares has halved.
Here’s the chart:
NOW WATCH: We tested an economic theory by trying to buy people’s lottery tickets for much more than they paid
Business Insider Emails & Alerts
Site highlights each day to your inbox.