It's not just bonuses. Deutsche Bank staff have another reason to feel aggrieved this week: their salaries didn't rise as usual, even if they were promoted from, say, director to managing director.
"Not only are salaries frozen year-on-year but even those who got promoted (at any level) saw no salary increase," complains one Deutsche bank insider in the fixed income currencies and commodities (FICC) division. "What is the point of getting promoted?," he adds. "You get perfect scores on reviews, meet your goals, get promoted and yet get no added compensation."
Deutsche Bank declined to comment on the salary allegations. Insiders complained that the fixed income division was unfairly targeted for the salary freeze, although it's possible equities staff were afflicted too.
The claims follow our report earlier this week that Deutsche's fixed income salaries would be frozen, although it was suggested then that analysts who were promoted to associates would get salary rises as usual.
Another Deutsche fixed income trader confirmed the salary stasis. However, he said the bank will be reviewing matters in July. "There are some obvious examples of people here who are paid fixed salaries below the market."
Insiders say they've been told that even if salaries are hiked in July, those changes will only apply to selective individuals and any salary increase will not be backdated. "This is just a way of getting people to leave," says one.
Despite freezing salaries and cutting some bonuses, Deutsche is understood to have increased its hypothetical 'reference total compensation.' This is an amount tailored to each employee which reflects how much they could earn in their job.
"They've literally told people, 'Hey look we raised your reference total compensation for next year. Isn't that great?',” says one insider. "But, it’s just an imaginary number and right below it are several statements claiming it’s just for reference. They aren’t liable to pay it."
There are complaints, too, about a lack of clarity between the interaction of reference pay and salary increases in July. "My reference pay is €250k," says one insider. "I currently get €150k in salary, but if my salary increases to €180k in July, does this mean my reference pay will also increase to €280k - or will my bonus just be cut?"
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