(Bloomberg) -- Deutsche Bank AG said employee pay raises for 2020 won't take effect until April 1, postponing increases that typically show up at the start of the year.
“We will continue to compensate employees for their qualifications, experience and skills, commensurate with the requirements, size and scope of their role,” the company said Tuesday in an emailed statement. “The only thing that will change is the date for annual review fixed pay adjustments to become effective. In future, this date will be April 1, instead of January 1.”
The New York Post reported the change to compensation earlier Tuesday, citing an internal memo from Chief Executive Officer Christian Sewing that blamed the need to cut costs.
Sewing has been reducing expenses after a year of turmoil that included a huge restructuring. The company is trimming the bonus pool at its investment bank by about 30%, people familiar with the matter said earlier this month. The worldwide revamp includes eliminating 18,000 jobs, suspending the dividend and exiting equity sales and trading.
For Sewing, the question of compensation is particularly acute this year as he tries to persuade top rainmakers to stay, defending businesses such as dealmaking and stock and bond issuance after big cutbacks elsewhere.
To contact the reporter on this story: Steven Arons in Frankfurt at sarons@bloomberg.net
To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Steve Dickson, Alan Goldstein
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