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Deutsche Bank Board Leaves 2017 Bonus, Total Pool of EUR 2 B

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Deutsche Bank AG’s (DB - Free Report) total bonus pool for 2017 is said to be over €2 billion, according to a Reuters report. This amount is significantly higher than €546 million paid in 2016 but, slightly less than €2.4 billion paid a year earlier.

To justify this compensation plan, the loss-making bank’s Chief Executive Officer, John Cryan said that this is a "one-off investment" that the firm is making to retain its employees.

However, after being criticized for paying large sums of money as wages, the top managers of the bank have decided to sacrifice their annual compensation for 2017.

Karl von Rohr, a board member of the bank told the news agency, Deutsche Presse-Agentur (DPA) that the sacrifice "isn't because we are of the opinion that we did a bad job. Rather, we considered it for the best that the board takes responsibility."

In January, Deutsche Bank was criticized as it planned to pay over €1 billion in bonuses, despite the fact that the one-off impact of the U.S. tax reform led the company to report a loss for the third consecutive year.

While Deutsche Bank is trying to bounce back through its various restructuring efforts, these huge payouts have annoyed German population as they believe that wealth is increasingly being concentrated in the hands of the super-rich.

Meanwhile, the bank has reaffirmed its target set in late 2015 to retrench 9,000 employees by the end of 2020.

The exact details of the compensation plan will be provided on Friday in the bank’s annual report.

Though Deutsche Bank’s restructuring efforts look encouraging, it is really difficult to determine how much the bank will gain, considering the prevailing headwinds.

Shares of Deutsche Bank declined 3.4% over the last six months on the NYSE, underperforming 5.1% growth recorded by the industry.

 

At present, Deutsche Bank carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Foreign Stocks to Consider

KB Financial Group Inc. has witnessed upward earnings estimates revision of 1.7% for the current year in the past 60 days. In twelve months’ time, the company’s share price was up 34.2%. It carries a Zacks Rank #2 (Buy).

ING Group, N.V.’s (ING - Free Report) Zacks Consensus Estimate for the current year has been revised 7.8% upward over the last 60 days. Additionally, the stock moved up 16.2% over the past year. It currently carries a Zacks Rank of 2.

Canadian Imperial Bank of Commerce (CM - Free Report) has witnessed upward estimates revision of 6% for the current fiscal year over the last 60 days. Its shares have risen nearly 4.1% in a year’s time. It also holds a Zacks Rank of 2 at present.

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