New co-CEOs say Deutsche Bank must cut costs, will pay bonuses
Published Tuesday, September 11, 2012 8:34AM EDT
FRANKFURT, Germany -- Deutsche Bank is announcing plans to cut costs, get rid of risky investments and stretch executive bonuses over a longer period.
The shakeup follows a 100-day review by new co-CEOs Juergen Fitschen and Anshu Jain.
The steps are aimed at getting the bank ready for a new, tougher environment: more regulation, a shaky global economy, and public hostility to excessive pay practices.
The bank says it will reduce bonus payments and pay deferred compensation to top management in a single payment after five years, rather than periodic payments over three years.
Deutsche Bank also plans to reduce costs by C4.5 billion a year by 2015. It will also trim C45 billion in investments in it no longer considers essential by 2013.