Deutsche Bank Asks Top Managers to Voluntarily Forego One Month’s Salary
According to a recent report by Financial Times, Deutsche Bank has suggested to its top managers that they forego a month’s paycheck while the bank continues on a restructuring process amid the coronavirus pandemic.
The voluntary paycut would affect over a hundred of the bank’s top-earning employees, and meant to act as a move of solidarity with economic distress caused by the coronavirus pandemic. Although agreeing to take a paycut is at the discretion of the senior management member, so far at least nine top-earning employees have taken the virtue-signalling path, and will not be receiving their month’s worth of fixed pay.
However, the voluntary paycuts are not likely going to amass to anything significant, except maybe score some brownie points with the gullible portion of the public. Even prior to the economic downturn of the coronavirus pandemic, Deutsche Bank was in some serious financial trouble. Last year, the bank began a serious restructuring process which would see a reduction of 18,000 positions by 2022, as well as a decrease in investment banking.
But it may already be too late, with both the restructuring process and the voluntary salary reductions. In the first quarter of 2020 alone, Deutsche reported a €43 million loss, after the bank significantly increased loan reserves. As a result of the bank’s poor financials at the beginning of the year, some analysts are anticipating the total net loss for the entire year to be approximately €1.8 billion – thus adding to the bank’s 5 consecutive years of operating at a loss.
But hey, at least the voluntary salary omission won’t go totally unnoticed: it can be served right next to the heaping plate of “we did our part to identify with the everyday struggles of the working class, so now please bail us out” rhetoric.
Information for this briefing was found via Financial Times and Zero Hedge. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.