Deutsche Bank Debt Salesmen Said to Go Amid Pay Overhaul
Deutsche Bank AG’s Casey Talbot, co- head of credit sales for the Americas, left the company this week along with at least three other debt salesmen, people with knowledge of the situation said.
Talbot also was head of investment-grade bond sales for the Americas at Frankfurt-based Deutsche Bank. Fellow senior credit salesmen Pat Iossa and Michael Curry were pushed out this week as the firm curbs executive pay, said the people, who requested anonymity because the departures haven’t been announced.
Deutsche Bank, Europe’s biggest lender by assets, is overhauling compensation to improve profitability and bolster capital. Co-Chief Executive Officer Anshu Jain, 50, has said he sees a risk the company may lose talented workers if competitors don’t embrace similar cuts. More than a dozen Deutsche Bank debt traders in New York have left since the start of 2011.
“We have taken a bigger first step than most of our competitors,” Jain said at a conference in London in September. “Is there a risk that our competition doesn’t follow suit? Only if you are willing to accept low ROEs with unchanged compensation practices elsewhere.”
Jain was referring to return on equity, a measure of how efficiently a company generates income. Deutsche Bank’s ROE (DBK) was 5.38 percent for the three months ended Sept. 30, about a quarter of what it was for the same period in 2007.
Talbot joined Deutsche Bank in 2010 from Bank of America Corp., where he was head of structured credit sales. He previously worked for Zurich-based UBS AG, according to employment records filed with the Financial Industry Regulatory Authority. He didn’t immediately respond to phone calls and e- mails requesting comment.
Deutsche Bank, when it hired Talbot, said the firm was committed to having “the best people in place as credit markets continue to recover.”
Iossa and Curry were both managing directors who had spent more than a decade at the company. Iossa, who dealt in distressed debt, joined in 1999 while Curry had been there since 2000, according to Finra records.
John Raveche, who started as a director in investment-grade debt sales in 2010, and John Silver, a director in currency sales, also left, the people said.
Renee Calabro, a Deutsche Bank spokeswoman in New York, declined to comment on the departures.
Deutsche Bank is among lenders grappling with Europe’s sovereign-debt crisis and new rules requiring them to hold more reserves against riskier assets. The company said Oct. 30 that it was eliminating 1,993 jobs, including 814 at its investment bank and 617 support positions, mainly from the securities unit.
Deutsche Bank rose 2.6 percent yesterday to 36.33 euros in Frankfurt. The shares have advanced 10 percent this year, compared with an 8.6 percent gain for the 38-company Bloomberg Europe Banks and Financial Services Index.
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