Deutsche Bank is slashing its bonus pool and some bankers are getting zero payouts
- Deutsche Bank cut its 2018 bonus pool by as much as 15% to 2 billion euros ($2.3 billion), Bloomberg reported.
- Many bankers at the firm saw deep cuts to their 2018 bonuses, and a few who based in New York and London received zero bonuses.
Some Deutsche Bank bankers may receive no bonus this year, after the German lender cut its 2018 bonus pool by as much as 15%, according to a Bloomberg report.
There are a few exceptions though: bankers whose payouts were guaranteed, like new hires, were able to avoid severe bonus cuts, and some top performers even got raises.Deutsche Bank shrunk the size of the bonus pool to around 2 billion euros ($2.3 billion), Bloomberg said, which is between 10% to 15% less than it paid out last year. The precise figure will be disclosed on March 22 when the firm releases its annual report.
The beleaguered banking giant has also reportedly considered closing its equities trading business after losing as much as $750 million last year, according to the Wall Street Journal.
A spokesman for Deutsche Bank declined to comment.
Deutsche Bank had a tough year last year and is facing a number of issues including a $1.6 billion loss on a municipal bond trade and increased expenses of taking out new bonds. It also has been dogged by a host of legal challenges and has paid more than $18 billion in legal fines over the past decade.
In February, Deutsche Bank reported earnings that fell short of analyst expectations for 2018. The lender has been implementing cost-cutting programs to improve efficiency and has reduced by over 1 billion euros ($1.13 billion) in the final quarter of 2018, according to its annual report.
It's also seeking a potential merger with rival Commerzbank by mid-2019, in case its restructuring plan goes awry, Bloomberg has reported.