Bringing back the bonuses: Deutsche Bank chief executive hopes 2016 a one-off year for annual sweetener slashing
Deutsche Bank's boss has his fingers crossed it can offer staff a better bonus deal this year, after the bank was forced to slash annual sweeteners significantly for 2016.
When grilled on bonuses at a press conference for Deutsche Bank's annual results, John Cryan said: "We hope to resume normal service in 2017."
The bank had a turbulent 2016, marked by litigation issues, ongoing restructuring efforts and a low interest rate environment. This morning, it announced net losses of €1.4bn (£1.2bn) for the full year, its second full-year in a row in the red, and net losses of €1.9bn for its fourth quarter.
Read more: Deutsche Bank forecast to be in the red for 2016
To cushion the financial blow, the German giant has already announced it will be cutting bonuses for one in four of its staff, a decision Cryan said today "wasn't taken lightly".
Anybody at the bank with vice president, director or managing director in their job title will not be receiving an individual bonus this year, which is based on employee targets and typically forms the bulk of people's yearly payout. These staff will still be eligible for a reward from a group bonus pool, which is based on the company's financial performance.
Cryan acknowledged today the move represented a "substantial cut versus last year". The management board has also waived its bonus for the year.
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The bank will provide a more detailed breakdown of its bonus payouts for 2016 when it releases its annual report next month.
While staff might be looking forward to potentially having more cash in their back pocket next year, investors have less to be optimistic about. When asked about when the bank would next be able to pay out dividends, Cryan said it was "always our intention to return to being a dividend-paying bank", it was still "too early" to say how soon it could do so.