Tomorrow is bonus day at Deutsche Bank. It may also be the day when Deutsche Bank's fixed income currencies and commodities (FICC) professionals are told they won't be getting a salary increase.
Deutsche Bank insiders claim managers were told of the pay freeze yesterday and that the news will be communicated to other staff when bonuses are announced at the German bank tomorrow.
They claim, too, that some people in FICC will still receive a salary increase. - Analysts and associates, for example, will be paid for moving up a grade.
Deutsche Bank declined to comment on the allegations. However, one senior insider said plans are being considered for pay increases for FICC employees of all levels in the coming months.
Claims that fixed pay will be frozen come amidst fears that Deutsche Bank's bonuses for 2018 will be diminutive.
Deutsche Bank has theoretically finished restructuring its investment bank, but CFO James Von Moltke has indicated that he will be willing to cut pay if revenue growth stalls. KBW analysts are predicting that Deutsche's fixed income revenues will be down nearly 6% year-on-year in the first quarter.
Under former CEO John Cryan, pay at Deutsche Bank was skewed away from bonuses and in favour of salaries. In December 2017, Cryan promised to hike salaries and in January 2018, London vice presidents (VPs) had their salaries raised from £155k to £170k (then $203k to $230k) to bring them into line with salaries at U.S. investment banks in the City.
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