Deutsche Bank is reportedly scrapping individual bonuses for its most senior employees.
Vice presidents, directors and managing directors, and members of the management board will forgo their bonuses, according to a memo acquired by Bloomberg. But a “limited number” of employees will receive a “special long-term incentive” package that will be deferred for as long as six years.
On Tuesday, Deutsche Bank reached a $7.2 billion settlement with the Justice Department over the sale of toxic mortgage securities leading up to 2008’s Financial Crisis. The bank also suffered last year over fears of its capitalization, a 23% stock slump and rising litigation bills, Bloomberg reports. CEO John Cryan has taken a number of steps to save money, including job cuts, dividend suspensions, and the sale of risky assets.
“Now that we have a clearer idea of the financial impact of the settlement with the U.S. Department of Justice and our performance for the year, we feel that tough measures are unavoidable,” Deutsche Bank said in the memo. “This is especially true at a time when thousands of jobs are being cut and our shareholders are not receiving an annual dividend.”