(Reuters) – Deutsche Bank AG <DBKGn.DE> has delayed raises to fixed pay compensation at the German bank by three months until after April 1, citing the need to further improve cost management, according to a memo seen by Reuters on Tuesday.
“After thorough discussions, we on the Management Board have taken the decision that, from 2020, any fixed pay adjustments in connection with the annual review or promotion process will be effective April 1 (not retroactively effective as of January 1),” Christian Sewing, the bank’s chief executive, wrote in the memo.
The memo added that the bank will continue to review fixed pay at regular intervals and make adjustments as necessary. It implied the annual effective date for pay adjustments will be pushed back permanently to April 1.
“As in previous years, variable and fixed pay compensation will be communicated in early March. Additionally, promotions will be brought in line and also become effective April 1 and will also be communicated in early March”, Sewing wrote.
The bank has been reeling from a series of scandals and years of losses more than a decade after the onset of the global financial crisis.
It is also in the midst of a major overhaul. After failing to merge with rival Commerzbank <CBKG.DE> last year, it announced plans to close some businesses, revamp its management board, and cut its workforce by 18,000 employees.
(Reporting by Tom Sims in Frankfurt and Kanishka Singh in Bengaluru; Editing by Matthew Lewis)