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Deutsche mulls bonuses change
Nick Goodway, Evening Standard30.05.08
Deutsche Bank, which employs hundreds of people in London, is considering a new bonus scheme that will reward bankers for their performance over several consecutive years rather than annually.
Chief executive Josef Ackermann became the first head of a major investment bank to suggest the change, which has been triggered by criticism of the financial services sector's use of short-term incentive schemes.
Many people believe this helped to exacerbate the problems of the credit crunch because bankers concentrated on short-term gains rather than long-term risk.
Ackermann said a "multi-year" bonus scheme was under consideration and could be "an important step" for Deutsche.
But he also admitted that the bank would have to assess whether such a scheme would make it harder to recruit and retain good staff who could earn large annual bonuses at hedge funds or in private equity.
Ackermann was paid €14 million (£11 million) last year.
