Pursuant to CRD 4 and the requirements subsequently adopted in the German Banking Act, the Bank is subject to a ratio of 1:1 with regard to fixed to variable components, provided that the shareholders may approve an increase to 1:2. At the Bank’s Annual General Meeting on May 22, 2014, and in accordance with Sec. 25a (5) German Banking Act, shareholder approval was granted to increase the ratio to 1:2. To emphasize the fixed compensation component in respect of remuneration for control functions employees, the Management Board has determined that individuals within the independent control functions are subject to a 1:1 ratio.
Compensation practices and structures
Achieving a sustainable balance between employee and shareholder interests is a key aspect of our approach. We have therefore modified our compensation framework.
Compensation plays an integral role in the successful delivery of our strategic objectives. Attracting and retaining the most capable employees on a global basis is central to our compensation strategy. The cornerstone of this is the concept of pay for performance, within a sound risk management and governance framework, and with due consideration of market factors and societal values. As we seek to align compensation to evolving internal and external expectations, reward structures are reviewed, and enhanced as needed, on a regular basis.
One of the main objectives of Strategy 2020 is to align reward more closely with performance and conduct. In order to achieve this goal, Deutsche Bank revised its compensation framework to drive sustainable performance at all levels of the Bank. The new framework, introduced in January 2016, provides clear guidance on the target proportion of fixed to variable compensation by corporate title and by division or function.
Our decisions on variable compensations are taken in consideration of the risk-adjusted performance and the long-term health of the Group and within a Group-wide robust governance framework, overseen by the Compensation Control Committee. The compensation structures are designed not to provide incentives for excessive risk-taking. This especially applies to employees who have a material impact on the risk profile (Material Risk Takers) and who we identify in accordance with the respective requirements, for example CRD 4, AIFMD, UCITS and their implementations into national laws.
For further details on our remuneration system, please refer to the Compensation Report.
Decision of Annual General Meeting on variable compensation
Values are key
50 % of
of our variable pay and promotion decisions in 2014 are comprised of adherence to our values and beliefs.