German lender Deutsche Bank cuts bonus pot after ‘difficult year’

Members of Deutsche Bank's board, including Yorkshire-born chief executive John Cryan, will not receive a bonus for the second year in a row
Members of Deutsche Bank's board, including Yorkshire-born chief executive John Cryan, will not receive a bonus for the second year in a row

Deutsche Bank has cut its bonus pot by 77% following a difficult year for the troubled German lender, which saw it stump up billions in fines.

The bank’s annual report shows that staff shared 500 million euro (£433 million) in bonuses last year, compared to 2.4 billion euro (£2.1 billion) in 2015.

But members of Deutsche’s board, including Yorkshire-born chief executive John Cryan, will not receive a bonus for the second year in a row.

Mr Cryan took home a base salary of 3.8 million euro (£3.3 million).

Total pay for Deutsche’s staff also fell, from 10.5 billion euro (£9.1 billion) to 8.9 billion euro (£7.7 billion) after the firm booked a 1.4 billion euro (£1.2 billion) loss in 2016.

The firm has also been stung with a series of high profile fines in recent months, including a 7.2 billion US dollar (£5.8 billion) settlement with American authorities following a probe into its sale of mortgage-backed securities during the financial crisis.

It was also fined more than £500 million in January after British and US regulators found that failings at the German lender led to 10 billion US dollars (£7.9 billion) being laundered out of Russia in a manner “highly suggestive of financial crime”.

Mr Cryan said: “2016 was a very challenging year for us at Deutsche Bank. It was also a year in which we demonstrated our resilience and changed much for the better, despite a tough environment.”

The bank is in the process of bolstering the balance sheet with an 8 billion euro (£6.9 billion) rights issue.

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