Jentzsch unveils new bonus structure at Dresdner Kleinwort

Stefan Jentzsch, chief executive of Dresdner Bank's renamed investment banking unit Dresdner Kleinwort, has revealed plans to tie staff bonuses more closely to profits made by individuals to cut costs and increase revenues.

Jentzsch told analysts at a conference in Munich the bank is "underperforming the market quite dramatically" in terms of its overall profitability and capital expenditure and is "clearly paying too much given the performance", Bloomberg reports.

He added it was imperative the bank improved its revenue stream to pay competitvely and retain bankers, conceding it had been "quite flat" in the past four years.

The bank will construct a bonus pool based on overall profits and distribute perquisites according to the perfomance of separate divisions, Jentzsch said. The changes are to take effect this year.

Dresdner Kleinwort dropped the moniker of its former executive chairman Bruce Wasserstein last month.