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Deutsche Bank executives were banned from selling the shares they held in the lender while it explored a merger with Commerzbank, another blow for employees who saw the value of their deferred share pay more half last year.
Bankers who tried to sell shares after a mandatory lock-up period ended this month were blocked by compliance and said that they "violated the employees' trading policy" because the shares were added to Deutsche's "list of internal conflicts", several insiders said. This happened after the two German banks revealed that they had taken part in formal discussions last Sunday.
"A bank-wide restriction on employee stock transactions in Deutsche and Commerzbank shares was put in place when negotiations were announced to ensure full compliance with the regulations in force" , said a spokesman. "It's common practice in these situations and advice has been provided to employees. Restrictions have since been restricted to a smaller group. "
Executives who might be involved in the due diligence of the transaction or have access to sensitive information were told that the ban was indefinite for them and that Deutsche's equity would remain on the list of priorities. -sale "until the merger is resolved," he said.
The controversial but long-disputed Deutsche-Commerzbank deal reached a climax last week after mounting pressure from the government, concerned about the stability of the German banking system. country. The transaction would create the second largest lender in the euro zone with € 1.9 million in badets, 140,000 employees and € 845 billion in deposits.
Although blocking is a standard procedure for any merger and acquisition operation in which Deutsche is involved, this ban fuels the discontent of the highest ranking officers who have seen their net salary drop dramatically in recent years.
Since the financial crisis, most of the bankers' remuneration has been paid in the form of deferred shares for seven years. Deutsche shares fell 58% last year and more than 90% since the beginning of 2008.
Almost all the bonuses were canceled three years ago when the lender had suffered a substantial loss, had been fined billions of dollars and embarked on a painful restructuring operation.
Meanwhile, it appeared this week that most of Deutsche's executives have more than doubled their salaries in 2018. Investment bank manager Garth Ritchie also receives an additional 250,000 euros a month to oversee group, which could bring him 9 million euros by the end of 2020.
While the total remuneration of the members of the Board of Directors increased from 29.8 million euros in 2017 to 55.8 million euros, the basic bonus pool was reduced from 14% to just under 1 , 9 billion euros, according to the annual report of Deutsche Bank published Friday. In 2018, the pre-tax profit of Deutsche Investment Bank declined by 52%, its turnover by 8% and its return on equity by less than 1%.
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