Deutsche Bank

Human Resources
Report 2017

Rewarding employees

A fair, transparent and sustainable approach to employee remuneration is one of crucial importance to the bank. As part of Strategy 2020, we introduced a new compensation framework in 2016, which aims to promote and reward sustainable performance and contributions at all levels of the organization.

In a number of European countries – including Germany, the UK and Spain – our internal framework is accompanied by the application of the respective legal requirements for equal treatment and equal pay. As a global company active in many areas, the bank generally strives for a cross-regional approach and transparency. We will thoroughly analyze the results from the various initiatives seeking to increase transparency and equality in remuneration and take them into account in the further development of our compensation framework.

Initially applicable to officers and key subsidiaries at Deutsche Bank, the new system was rolled out further to cover smaller entities and the substantial group of non-officers in Germany with effect for 2017. The new framework – including the target ratios of fixed to variable compensation by corporate title and by division or function – represents a more transparent approach. It ties employees’ compensation more closely to the bank’s performance and creates a stronger link between individual performance and pay. Variable compensation comprises a group component for all employees and – depending on division and corporate title – eligibility for either an individual component or Recognition Award. This means that part of the bank’s workforce is no longer subject to discretionary decisions on variable compensation. Instead, variable compensation is based on the results of the Group and determined in line with global performance indicators, as described below.

While variable compensation payments had been limited significantly in 2016 due to the operating environment (employees received the group component only, with only those at lower levels of the organization being awarded individual variable compensation), a larger total amount of year-end performance-based variable compensation was determined for 2017, covering all compensation components and recognizing employees’ sustainable performance and contributions.

The structure of the group component remained unchanged in 2017 and is based on four key performance indicators: the bank’s Common Equity Tier 1 (CET1) capital ratio (fully loaded); leverage ratio; adjusted costs; and post-tax return on tangible equity (RoTE). Throughout 2017, the bank made good progress towards its financial targets. The Management Board thus decided on a target achievement rate of 55%, which serves as a basis to calculate the group component awarded to each eligible employee.

For the individual component, divisional budgets based on a range of factors, including both group and divisional performance, but also considerations regarding staff motivation and market pay, have been made available and awarded in line with individual performance.

Workforce costs and revenues

 

2017

2016

2015

2014

2013

1

Compensation ratio: Compensation and benefits as a percentage of total net revenues

2

Total noninterest expenses

3

Supplementary information to the Consolidated Financial Statement according to section 315a HGB

Compensation and benefits (in € m)

12,253

11,874

13,293

12,512

12,329

Compensation ratio1

46.3%

39.6%

39.7%

39.2%

38.6%

Ø Compensation and benefits per Ø FTE in period (in € k)

125.4

117.4

133.7

128.1

125.8

Share of compensation and benefits in % of total expenses2

49.6%

40.3%

34.4%

45.2%

43.4%

Wages and salaries3

10,108

9,819

11,163

10,466

10,406

Social securiy costs3

2,145

2,055

2,130

2,046

1,923

thereof: those relating to pensions3

749

671

724

659

615

Total net revenues (in € m)

26,447

30,014

33,525

31,949

31,915

Ø Revenues per Ø FTE in period (in € k)

270.6

296.6

337.2

327.0

325.7

Compensation and benefits by division

in € million

2017

2016

2015

Corporate & Investment Bank

4,273

3,955

4,897

Private & Commercial Bank

3,979

4,042

4,161

Deutsche Asset Management

778

708

870

Non-Core Operations Unit

68

86

Consolidation & Adjustments

3,223

3,101

3,279

Total

12,253

11,874

13,293

For more details, please refer to Deutsche Bank's 2017 Compensation Report.

Postbank calculates its employees’ variable salary components based on the success of the Postbank Group, as well as on target agreement and performance assessment processes. As part of these processes, employees are assessed on a regular basis, or at least once annually after the end of the calendar year. Moreover, monitoring appraisal interviews are also held over the course of the year. For managers, remuneration components are tied into incentives promoting sustainable action. Parts of the variable remuneration package are deferred and dependent on the sustainable development of the company.

Civil servants of Postbank in Germany

in FTE, Postbank acquired in 2010

2017

2016

2015

2014

2013

*

Civil servants whose status as such is currently suspended. They have temporarily switched to an employment relationship not covered by collective agreements.

Avtive civil servants

4,310

4,495

4,786

4,972

5,389

Civil servants on temporary leave from civil servant status*

439

453

453

490

434

Civil servants at affiliated companies

793

830

932

928

1,038

Total

5,542

5,778

6,171

6,390

6,861

Share of civil servants in Postbank Germany in %

32.0%

32.1%

33.3%

34.4%

38.1%

Share of civil servants in Germany in %

13.0%

13.0%

13.5%

14.1%

14.8%