Deutsche Bank Reportedly Cuts Bonus Pool By Almost 80%

(RTTNews) - Deutsche Bank AG (DB) cut its bonus pool for 2016 by almost 80 percent, Frankfurter Allgemeine Sonntagszeitung reported.

Karl von Rohr, chief administrative officer at Germany's biggest bank, reportedly said that bonus reductions were "frustrating" for staff, but said that the decision had been taken "very consciously, also bearing in mind our shareholders".

Deutsche was negatively impacted by a $7.2 billion settlement agreement with the U.S. Justice Department over a mortgage bond investigation. However, the settlement amount was only about half of what the government initially wanted.

In the wake of the settlement with the DoJ, John Cryan, chief executive, said Deutsche's management board had decided to waive their bonuses for 2016. He also said employees with the titles vice-president, director and managing director would receive no individual bonuses for 2016, although they would still be eligible for a group-wide bonus linked to the bank's overall performance.