Deutsche Bank AG, Europe’s largest investment bank by revenue, will limit cash bonuses at 300,000 euros ($406,000) for the second year, according to a person briefed on the matter.
Deutsche Bank told staff about the cap today, said the person, who asked not to be identified because the information isn’t public. The Frankfurt-based company will publish compensation data on March 20, according to a statement on its website.
Banks are under pressure to rein in compensation and tie it more closely to performance after large cash payouts were blamed for encouraging the type of risk-taking that led to the 2008 collapse of Lehman Brothers Holdings Inc. and the subsequent financial crisis. Deutsche Bank cut the total pay of its investment bankers 14 percent in 2013 from a year earlier as revenue fell and legal costs weighed on profit.
Reuters reported the bonus cap earlier today.