German global banking and financial services organisation Deutsche Bank has decreased its 2016 overall variable compensation pool by 77% to €0.5 billion (£0.4 billion).
The organisation, which employs 99,744 members of staff, had a variable compensation pool of €2.4 billion (£2 billion) in 2015.
The variable compensation pool includes an annual performance award, long-term performance award, and a division performance award. Variable compensation awards are based on individual and group performance.
Senior employees received the group component of the variable compensation award but not the individual component.
The organisation ran its recognition awards in the 2016 financial year. These awards pay out twice a year, and recognise the contribution of more junior staff. Employees up to the assistance vice-president level who were not eligible for a recognition award were eligible to receive a limited individual variable compensation award.
The organisation also fulfilled binding contractual agreements, such as bonuses covered by collective labour agreements.
The organisation’s management board waived its variable compensation for 2016.
Deutsche Bank awarded special long-term incentives, or retention awards, to 5,522 employees in early 2017, partially made up of shares. These will be deferred for up to five years, with an additional retention period of 12 months. These incentives are designed to aid retention rather than recognise employee performance in 2016, so they are not considered part of the 2016 compensation pool.
Fixed pay increased by 3% between 2015 and 2016, rising from €8.1 billion (£7 billion) to €8.3 billion (£7.2 billion).
Total compensation, including both fixed and variable compensation elements, decreased from €10.5 billion (£9 billion) in 2015 to €8.9 billion (£7.7 billion) in 2016.
John Cryan, chief executive officer at Deutsche Bank, 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.
“We are making progress towards our goal of building a better Deutsche Bank; a bank which enables growth in the economy, serves society and creates a positive impact for our clients, our people, the communities we serve and for our shareholders.”