What do we want to achieve?
Since 2012 our compensation approach has included a strong behavioral focus at all levels of the organization. It rewards a long-term and sustainable focus of our business activity, customer orientation and team work. We want to ensure that employees think in a farsighted manner and consider all the possible effects of their actions. Thinking and acting with a view to long term success are rewarded.
How are we implementing that?
We aim for transparency and a long-term view, and have presented a separate remuneration report annually since 2010. Our remuneration practices are in line with and partially go beyond the principles of German Federal Financial Supervisory Authority (BaFin) and the EU.
In revising the compensation system, the proportion of variable compensation has been reduced, bonus payments are now geared to the sustainability of success and are made over several years in the form of deferred compensation, which is only disbursed after 5 years to some extent. The scheme also foresees claw backs.
An independent, external compensation review panel made up of international economic experts, which we set up in 2012, reviewed the restructuring of our compensation approach. The Compensation Control Committee has been newly established at the Supervisory Board level in 2013. It will ensure a closer link to and focus on Group compensation matters by the Supervisory Board.
What have we achieved?
We have introduced a sustainable, responsible compensation system and reinforced our internal control mechanisms. With an increased focus in our industry on risks and rewards stemming from regulatory changes, public scrutiny and our own cultural change initiative, Deutsche Bank has implemented a clearly defined and documented reward strategy which embodies Deutsche Bank’s values and beliefs. In 2014, cultural and control elements have been integrated more comprehensively into the compensation systems, putting a greater emphasis on the link between pay and performance. The compliance with our values and beliefs has had a 50% impact on our variable compensation and promotion decisions since 2014.