John Cryan’s future as Deutsche Bank CEO was cast into further doubt on Friday after another disappointing fourth-quarter trading performance. But for the bank’s traders there’s only one question that really matters: what does this mean for bonuses? Here’s a rundown of the key issues.
Cryan has been saying for months that bonuses would return to “normal” for 2017, meaning the bonus pool will be decidedly bigger than the one for 2016. Still, the heyday of investment banking pay -- when Deutsche Bank’s star performers in London would get an Aston Martin as a special sign of appreciation -- are long gone. The bonus pool has shrunk by about 11 percent annually since at least 2009. The two co-heads of the investment bank division, Marcus Schenck and Garth Ritchie, in December asked for 1.2 billion euros in bonuses for their unit, according to a recent news report. Their unit has traditionally received about 60 percent of total bonuses.