As layoffs at Deutsche Bank are looming, the company recently revealed the pay of its bankers in 2013. While many who reviewed the report may conclude that they should seek employment elsewhere, others are finding that there could be a silver lining in the company’s playbook. The following highlights are worth noting:
This is confirmed by Deutsche’s statement that it won’t defer pay for those making less than 100,000 Euros ($138,000).
5. Deutsche paid its investment bankers approximately 2/3 of what that same talent could have earned at UBS.
6. Sign-on bonuses were given to a fair number of employees last year in excess of $1,000,000, but the EU restricts this kind of conduct. The conclusion is that these were for employees outside of Europe.
7. The bank noted that it will pay as much as three times what many of the front office bankers are making (the under 100k group). This is great news for those who are looking to make a move, but prefer the culture of Deutsche and wish to grow from within.
8. During bad years, the deferred bonuses can be withdrawn in 20% increments. This means that bankers who were looking forward to a tremendous lump sum in 2019 shouldn’t be counting their chickens before they hatch. Events like those in 2008 could lead to many simply being thrilled to be working in the industry they love.
9. Lastly, regulated employees will be paid half of their bonuses in vested stock that has restrictions on when it can be sold. To break it down: it’s vested, but cannot be sold until vested further.
Overall, the compensation report is a great work of transparency for bank employees and customers. While many may not agree with the content of the report, others can appreciate that they have a good amount of information about how these professionals are getting paid. For students looking into this field, it’s also a great view of what they can look forward to.