Deutsche Bank is the first to introduce stringent rules of reward
Deutsche Bank (Deutsche Bank) to take a pay reform action, the lead bank of the bank’s worldwide introduction of stringent rules, so that it can deprive the prize money earned by the employees former employer.
Asset size as Europe’s largest bank, Deutsche Bank this year has significantly tighten the bonus rules, the bank is now able to recover the newly recruited senior staff not granted stock (unvested share), these stocks pay of employees in the beginning of the Deutsche Bank employed they earned at another bank stock exchange.
In the banking sector, such rules is, if not unique, is unusual, however, it could become a blueprint for competitors to follow.
Under the pressure of investors, politicians and regulators, the European banking industry is stepping up efforts to investigate the responsibility of the employee engaged in misconduct or loss resulting from acts to recover their bonuses to a higher frequency.
British banks, including HSBC (HSBC), Royal Bank of Scotland (RBS) and Lloyds Banking Group (Lloyds Banking Group), in the bonuses recover rules in effect since 2009, is the most active. http://naomiszw.blogspot.com/
British government holds a 82% stake in Royal Bank of Scotland, from about 35 people there to recover the bonuses, while HSBC has taken in more than 10 cases this practice.
Recover in 2008, the first implementation of rules UBS (UBS) said, withhold CHF 204 million deferred payment of bonuses in 2011.
The pay experts expected, after a series of Banking scandal broke out in the near future (including the London interbank offered rate (Libor) manipulation case and the anti-money laundering mechanisms failed) this year, banks take advantage of the bonus recovery rules will be increased substantially.
British “Financial Times”, a large European bank said, hundreds of new cases could lead to bonuses axed under consideration.
Recover the rules so that the banks can be cut or to cancel unpaid deferred payment bonus. Prerequisite bank to do so, the profits generated by the individual or department reach to reward expectations.
Recent notable cases include the American JP Morgan Chase (JPMorgan Chase), the bank to recover the bonuses of employees involved in its London treasury department $ 5.8 billion trading loss. http://blog.livedoor.jp/xtc668-fude/
Deutsche Bank newly appointed CEO Anshu Jain (Anshu Jain) recently said that he hoped the row being in the forefront of cultural change, including reform of the remuneration of the investment bankers.
“We firmly believe that the industry as a whole must change its compensation model, the former Head of the investment banking division of Deutsche Bank said last month.
A spokesman for Deutsche Bank, effective January tighter bonus rules apply to all newly hired, as a senior staff involved in risk-taking activities.
A recruitment expert warned, this rule may increase the difficulty of the Deutsche Bank to attract experienced talent, because of the potential job seekers may not want to own stock in another bank earned risk.
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