- Deutsche Bank
As Deutsche Bank announced a large loss on Thursday, CEO John Cryan took the opportunity to make a veiled dig at the compensation culture at investment banks.
Included on a presentation slide outlining the “significant challenges” at the bank’s market division was abullet point made up of three words: “Inflexible compensation culture.”
In other words, Cryan is saying pay didn’t move down as much as it should have when revenues fell.
The slide said the global-markets units, made up of the businesses that sell and trade equities, bonds, foreign exchange, and derivatives, would remain a “core business.”
Cryan, who has been CEO of Deutsche Bank since June, wouldn’t be the first leader of a European bank to complain about compensation. Barclays chairman John McFarlane spoke at the annual conference of the British Bankers’ Association in October and argued that bankers earned too much.
“I used to run the markets side of various institutions,” MacFarlane said, “and I was never paid anything close to anything people get paid in these areas now.”