Co-Chief Executive Officers (CEO) of Deutsche Bank AG DB – Anshu Jain and Jurgen Fitschen – have been awarded compensation worth €6.6 million each for 2014, as per the bank’s Annual Report 2014. This reflects a year-over-year decrease of 11% from €7.47 million paid in 2013.
Notably, in 2014, under the leadership of the Co-CEOs, the bank’s net income of €1.69 billion came in well ahead of €681 million reported in 2013. Also, non interest expenses declined 2% year over year to €27.7 billion.
Despite improved financial performance in 2014, the stock was one of the worst performers among global banks as it tanked 25% last year. Further, the company is embroiled in numerous legal issues including the ongoing investigations relating to alleged rigging of interest rates in the foreign exchange market.
Deutsche Bank’s Strategy 2015+, which outlines a number of initiatives to boost its competitiveness, considers change in the company’s compensation policies. The new compensation program directs payment of bonuses to the chief executives after a period of five years, instead of the former partial bonus payment after every three years. Other initiatives include improvement in efficiency, aggressive cost cuts and a simplified capital structure.
Among other banking giants, Bank of America Corp.’s BAC Chairman as well as CEO Brian Moynihan is expected to receive $13 million as total compensation for 2014, which reflects a decline of over 7% from the pay awarded to him in 2013. This move did not come as a surprise, given the company’s struggling profitability throughout the year.
Also, Citigroup Inc. C CEO Michael Corbat received an approximate 10% pay cut in his total compensation package, which perhaps came owing to the company’s dismal performance in 2014.
However, Sergio P. Ermotti, CEO of UBS Group AG UBS, has been awarded a 4% year-over-year increase in his compensation to CHF11.16 million for 2014. Though in 2014, the bank’s financials were dented with legal and regulatory charges, the company stated that under Ermotti’s leadership, the company recorded a strong performance last year.
Deutsche Bank currently holds a Zacks Rank #5 (Strong Sell).
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