Deutsche Bank AG is reducing bonuses at its investment bank unit by about 30%, Bloomberg News reported, citing people with knowledge of the matter.
The percentage cut will be an average at the German lender's fixed-income trading division, the sources told Bloomberg. For individual performance and units, the bank will make some adjustments. Overall, variable pay will be cut by roughly 20%, the insiders added.
The bonus cuts come as Deutsche Bank executes a €7.4 billion restructuring following a troubling 2019, the report noted. These cuts aim to sharpen the variation in bonuses for top and lower performers, and also reflects the reduced headcount due to the lender's restructuring, two of the sources said.
CEO Christian Sewing rolled out a restructuring plan aimed at streamlining and revamping the lender's global operations, which also includes 18,000 layoffs.
Top leadership at the bank's fixed-income business and research division had appealed to the management board following proposed bonus cuts, one of the sources noted.
The bank's employees took home a total of €1.95 billion in variable pay in 2019.
Deutsche Bank is set to publish its fourth-quarter 2019 earnings on Jan. 30, 2020, with bonuses to be included in its annual report on March 20, 2020.