Deutsche Bank did it again. According to a memo sent to employees today and seen by eFinancialCareers, the German bank won't be announcing promotions and increasing salaries after all tomorrow. Instead, any salary adjustments will be delayed until April 2020.
Deutsche didn't immediately respond to a request to comment on the delay, which comes after the German bank did something similar last year.
In today's memo, Deutsche says it will now announce this year's promotions in early March, around the same time that it announces bonuses.
The bank says the changes reflect the need to approach costs "in a disciplined manner" in order to ensure "sustainable returns for shareholders." It adds that other banks are operating under similar constraints and have also chosen to back date salary rises after this year's promotions.
The delayed increases in salaries are likely to be accompanied by lower bonuses. Bloomberg reported earlier this month that Deutsche's fixed income traders could see bonus cuts of up to 30% this year.
Salaries are particularly important at Deutsche Bank. The German bank skews compensation towards salaries more than other banks, particularly on Wall Street, where it has a reputation for paying salaries of $500k. A delay of three months could therefore cost new MDs $125k each.
It could be worse. Last year, there were complaints that Deutsche didn't increase salaries at all for some of those promoted above analyst and associate (AVP) level. "What is the point of getting promoted?," asked one trader. "You get perfect scores on reviews, meet your goals, get promoted and yet get no added compensation."
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