Deutsche Bank Slashes Bonuses After Hefty Loss -- Update

By William Wilkes

FRANKFURT-- Deutsche Bank AG slashed bonuses paid to staff by 80 % last year after the German lender suffered its second consecutive full-year loss.

Bonuses for 2016 will fall to EUR546 million ($588.2 million) at constant currencies from EUR2.4 billion in 2015, the bank said in its annual report.

It made a net loss of EUR1.4 billion last year following a tumultuous period when it was hurt by legal costs and worries about the lender's financial position.

The German lender's management board said in January that many of its senior staff wouldn't receive 2016 bonuses, and that "tough measures are unavoidable" as it set about cutting thousands of jobs and stopped its dividend payment to shareholders.

The bank has said since angered some investors with plans to raise EUR8 billion in fresh capital.

Total pay, including fixed pay and bonuses was down 15% last year at EUR8.9 billion from EUR10.5 billion in 2015.

Chief Executive John Cryan has previously said the bonus cuts were "the right thing to do," and that the bank planned to return to normal compensation programs for the year 2017.

Analysts applauded Deutsche Bank's suspension of bonuses, but morale among Deutsche Bank employees has suffered and senior bankers and traders have left the bank for competitors.

Deutsche Bank isn't paying 2016 bonuses to its co-CEOs and other management-board members, as announced in January. Mr. Cryan and the management board's 10 other members also waived their bonuses last year.

Ordinary management board compensation, including salary, pension and other benefits, remained at EUR2.4 million. Overall 2016 management-board compensation rose 14% to EUR25.9 million, however, due to the body having an additional member in 2016.

The lender said Mr. Cryan's total 2016 compensation was EUR3.8 million. He received EUR1.9 million for 2015, having joined the board in July of that year.

Write to William Wilkes at william.wilkes@wsj.com

(END) Dow Jones Newswires

March 20, 2017 04:56 ET (08:56 GMT)

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