German banking giant Deutsche Bank AG (DB) on Monday announced that fiscal 2016 bonuses were slashed sharply, after reporting second consecutive full-year loss. The company also announced its plans to raise capital of around 8 billion euros.
While publishing its Annual Report and Compensation Report, the company noted that total compensation awarded for 2016 decreased to 8.9 billion euros from 10.5 billion euros last year. This was driven by a 77 percent reduction in variable compensation awarded in 2016 to 0.5 billion euros in 2016 from 2.4 billion euros in 2015. The move was after the Management Board's decision to substantially limit variable compensation for employees at senior levels. A portion of this variable compensation will be paid out in future years.
Deutsche Bank reported a net loss for 2016 of 1.4 billion euros, versus a net loss of 6.8 billion euros for 2015.
In his letter to shareholders, John Cryan, Chief Executive Officer, said, "2016 was a very challenging year for us at Deutsche Bank. It was also a year in which we demonstrated our resilience and changed much for the better, despite a tough environment."
Commenting on the bank's recently-announced refinement of strategy and capital raising, Cryan said, "Our goal is to strengthen our position as a leading European bank with global reach, supported by our strong position in our home market, Germany. A solid capital base is essential if we are to succeed in our future strategy and capture growth opportunities for Deutsche Bank. For that reason, the Management Board has decided on a capital raising from which we expect proceeds of around eight billion euros."
In Germany, Deutsche Bank shares were trading at 17.50 euros, down 2.02 percent.
by RTT Staff Writer
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