Deutsche Bank has quietly promoted its new class of global managing directors (MDs). The German bank is understood to have informed directors who are on its new MD list of their new promotions late last week, although the list has not yet been publicized internally. Deutsche typically circulates the list among its staff in March, when bonuses are paid. If you haven't heard already, however, the implication is that you're out of luck.
This year's promotions at Deutsche Bank are likely to be particularly contentious following suggestions that the German bank will cut its bonus pool by 10%. Following a 50% reduction in the bank's share price in the past year and various defections from the senior ranks, Deutsche needs to keep remaining staff happy and promotions are one way of doing this. At the same time, however, Deutsche needs to cut costs, and a large number of new MDs on inflated salaries will drive up the fixed cost base. This year's promotions are therefore a difficult juggling act.
Deutsche declined to comment on the promotions. Insiders at the bank suggested that Nick Maalouf, a director in equity derivatives trading, is likely to be on the list after being promised a promotion earlier in the year (possibly as a means of retaining him). Other lucky directors are said to include Frédéric Buri-Mazet , a real estate banker in Paris, Ludwig Hartmann, an industrials banker in London and Stefan Pietge, a consumer coverage MD in London. The Australian Financial Review reported that four people were promoted to MD in Australia.
The most recently available pay figures for material risk takers - many of whom are MDs - at Deutsche Bank showed them receiving salaries averaging $730k plus bonuses of $1.1m. Deutsche Bank famously compels its most senior staff to wait a full five years before receiving any of their bonuses, and has in the past been known to ask its managing directors to take a bonus cut in order to better reward junior staff. Being promoted at the bank may therefore be a double-edged sword.
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