Deutsche Bank raises salaries as bonus tax looms

January 19, 2010

    FRANKFURT, Jan 19 (Reuters) – Deutsche Bank <DBKGn.DE> is raising fixed salaries for staff and cutting variable pay, Germany’s flagship lender said on Tuesday as regulators and politicians pursue a clampdown on bonuses.
   Deutsche Bank said the move arose from a review to ensure pay “remains competitive”. 
   Fixed pay for 2010 will be calculated using an average based on revenues from the years 2007 — a very good year for investment banking revenues — and 2008, a person familiar with the matter said.
   Overall compensation for employees is not expected to rise as a result of the change between fixed and variable components, the person said.
   Britain has announced a one-off levy which will tax bonuses by 50 percent in the 2009 bonuses round. [IDnN06146875]
   U.S. President Barack Obama last week outlined proposals for Wall Street banks to pay up to $117 billion to reimburse taxpayers for a bailout. [ID:nN13152862].
   France in December announced plans to clamp down on trader bonuses. [ID:nLDE5BF25S]
   News of the change in Deutsche Bank’s remuneration policy was first reported in German daily Handelsblatt.  (Editing by Jon Loades-Carter) ((Reporting by Edward Taylor, +49 69 7565 1187; edward.taylor@thomsonreuters.com; edward.taylor.thomsonreuters.com@reuters.net))
 Keywords: DEUTSCHEBANK/PAY
  
Tuesday, 19 January 2010 09:23:11RTRS [nLDE60I0BT] {C}ENDS

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