Deutsche Bank Says CIB Head Urwin May Be Worth More Than CryanBy
Ex-JPMorgan banker leading client review to improve controls
Deutsche Bank changes compensation system for division heads
Pay for all of Deutsche Bank AG’s executives will be capped at the same limit this year. But a new disclosure shows corporate and investment bank head Jeff Urwin may be worth more compensation than co-Chief Executive Officer John Cryan.
Urwin’s theoretical “maximum” pay under the bank’s formula is 13.2 million euros ($15 million), higher than Cryan’s 12.5 million euros by the same measure, the Frankfurt-based bank said in a statement Thursday. Neither will actually receive those amounts, as compensation for management board members is capped at 9.85 million euros for 2016.
Cryan, who took over in July from Anshu Jain, is shrinking the trading empire built by his predecessor to focus on businesses which consume less capital as the bank pays fines for past misconduct. Urwin, hired last year from JPMorgan Chase & Co., is central to the bank’s overhaul as he expands its advisory and underwriting arm and leads a review of how the bank takes on clients to improve controls.
Deutsche Bank also introduced a division performance award for the executives who run the company’s four operating units. The bank said it was adding the bonus to “achieve competitive pay levels” for leaders of revenue-producing divisions.
For that bonus, Urwin’s maximum award is 3.3 million euros, more than the 2.4 million euros each which Garth Ritchie, the head of markets, and Quintin Price, the head of asset management, stand to earn, according to the statement. Christian Sewing, who oversees consumer banking, wealth management and some corporate clients, has a maximum 1.6 million-euro award, the statement shows.
Deutsche Bank has said it will realign the reporting structure of its units when it publishes first-quarter earnings next month. The trading business overseen by Ritchie generated 31 percent of its 33.5 billion euros of revenue last year, making it the single largest source of earnings, company filings show.
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