The truth about compensation at Commerzbank

For those in the know, referring to Commerzbank's pay pot as its bonus 'pool' may seem misplaced: 'puddle' might be more appropriate; the bank's not known for paying particularly well. This year, however, Commerzbank might pay some of its London bankers more than usual, and for reasons other than those laid out in its recent compensation document.

There aren't all that many former Dresdner Kleinwort bankers still left at Commerz. But those that remain are set to receive the second of two 'stabilisation' payments in December.

The bank declined to comment on the stabilisation policy, but we understand from insiders that the first payout, which took place around August this year, was quite generous: VPs allegedly got 75-90k.

As well as this, former Dresdner bankers can expect to receive a bonus in 2010, subject to a three year deferral and clawback if the share price doesn't reach a specified level. There's speculation as to how large these bonuses will be, however: last year many at Dresdner saw their payments slashed 90%.

One ex-senior Dresdner banker says it was the minuteness of last year's bonuses which made the stabilisation payments necessary: "To be honest, some of my colleagues were running out of money."