+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Wall Street bonuses have fallen off a cliff

Mar 11, 2016, 20:03 IST

Jonathan Ferrey/Getty Images

Deutsche Bank slashed its bonus pool.

Advertisement

The firm announced in its 2015 annual report that the overall bonus pool was cut by 17%, totaling €2.4 billion ($2.7 billion) for 2015.

The bonus pool in the investment bank, known as the Corporate Banking & Securities division, was cut by 20%.

Deutsche Bank also confirmed that bonuses for the supervisory board were reduced to zero.

Deutsche Bank reported a $7.4 billion loss for 2015.

Advertisement

CEO John Cryan has spoken out before about the compensation culture at investment banks. In an October presentation, he outlined the "significant challenges" posed by an "inflexible compensation culture."

In other words, he was saying that pay doesn't move down as much as it should when revenues fall.

Deutsche is not the first bank to slash its 2015 bonus pool. Credit Suisse cut its 2015 bonus pool by 36% for traders and 11% overall.

New York State comptroller Thomas DiNapoli on Monday reported that the average 2015 Wall Street bonus in New York was down 9% from 2014. The total New York City finance bonus pool was down 6%.

In Deutsche Bank's annual report, Cryan also warned that the first quarter has been "challenging" for banks.

Advertisement

"The beginning of 2016 has seen volatility in the world's financial markets," Cryan said.

"This has impacted the banking sector. The seasonally strong first quarter might turn out to be challenging for the sector overall. Deutsche Bank is no exception to this."

NOW WATCH: The days of restaurant tipping are dying

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article