Deutsche Bank has reportedly slashed total compensation for employees at its investment bank by 14% in the fourth quarter of 2013.
German banking major slashed salaries, bonuses and other benefits in Corporate Banking and Securities unit to 5.3 billion as revenues dropped 12% and staff levels sank 2%, according to Financial Times.
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Revenue from investment banking and trading declined 27% to 2.46 billion in the fourth quarter from a year earlier, led by a 31% decline in income from debt trading, Deutsche Bank said in a statement last week.
The move is part of the bank’s strategy to boost profit and capital levels to meet stricter regulatory requirements and boost shareholder returns.
Anshu Jain, co-chief executive of the bank, did suggest that pay restrictions could affect the bank’s ability to hold on to some staff.
"For the people that just want to be here to maximise their short-term money, if we wind up losing them, so be it: more than happy to do that," he was quoted as saying by the publicaton.
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By GlobalDataIn the fourth quarter of 2013, revenue from investment banking and trading declined 27% to 2.46 billion, led by a 31% decline in income from debt trading, Deutsche Bank said in a statement last week.
