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Deutsche Bank Should Slash Bonuses of Staff, Autonomous Says
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Bank could raise as much as 2.8 billion euros by cutting pay
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Says top 3,000 staff should get no bonus to preserve capital
Deutsche Bank AG could raise as much as 2.8 billion euros ($3.14 billion) by taking a tougher stance on employee compensation and not giving bonuses to thousands of staff, according to Autonomous Research LLP.
“Being very tough on the 2016 bonus pool and requiring the forfeiture of unvested shares could be helpful,” according a note this week by Autonomous’s London-based Chief Executive Officer Stuart Graham seen by Bloomberg News. “This would also provide a strong signal to long-suffering shareholders, who have stumped up 13.5 billion euros of new equity” since the fourth quarter of 2009, excluding capital raised to buy its German retail unit Postbank.
