More losses likely as Deutsche Bank seeks to save €4.5bn

Banking jobsDeutsche Bank has signalled that more jobs could be on the line after announcing plans to cut costs by €4.5 billion a year and pledging to reduce bonuses to its most senior staff who will have to wait five years for any payouts.

The bank is also setting up a new compensation standards panel to review the way staff are paid as it attempts to tackle the reputational challenges facing the banking industry amid an ongoing investigation into Libor rate-rigging.

Joint chief executives Jurgen Fitschen and Anshu Jain said they wanted to put the bank at the “forefront of cultural change in the industry”.

“Tremendous mistakes have been made,” said Mr Jain, as he admitted that “highly paid individuals are our biggest cost base”. With shareholder returns falling, he added: “We can’t expect our investors to allow us to pay the bonuses we have in the past.”

Deutsche is to change its deferred bonus payouts to the top 150 staff; instead of staggered payments over three years – as has become a regulatory requirement since 2008 – there will now be a single payment after five years. – (Guardian service)