Deutsche Bank’s bonus restraint goes only so far 18 Jan 2017 The German lender says it’s taking tough steps on pay after investors endured a hard year. Executives will waive all bonuses, and senior staff will lose some of their variable pay. But Deutsche has included loopholes for key staff, and fixed pay could always rise to compensate.
UniCredit fixed pay cuts are double-edged sword 11 Jan 2017 The Italian bank's chair cut his salary by 40 pct, following the example of new CEO Jean-Pierre Mustier. UniCredit pay was too high relative to peers, and restraint is welcome. Risks associated with cutting fixed as opposed to variable pay mean it's unlikely to catch on, though.
Sports Direct undercuts exec pay ideals 6 Jan 2017 The retailer’s bosses receive an apparently model mix of low salaries and performance-based awards. The former CEO’s fixed pay was less than a twentieth of Martin Sorrell’s at WPP. Yet an exemplary pay mix has failed to deliver either shareholder returns or good governance.
Exec pay is crying out for a race to the bottom 3 Jan 2017 Battles against corporate excesses are worthy but come unstuck all too quickly. Bosses keep getting paid more than their predecessors. To save capitalism, some could tender their services more cheaply. The tradition of the $1 CEO serves as a template. Even better: work for free.
Deutsche chair ought to have both hands on wheel 23 Nov 2016 Paul Achleitner's likely re-election at the German lender has riled some investors. On his watch, Deutsche Bank shares have slid nearly 50 pct. A thorough if belated management overhaul earns Achleitner some credit. He could get more by ditching board roles at Daimler and Bayer.
Deutsche bonus clawback can work even if it fails 18 Nov 2016 The struggling German bank wants to cancel former executives' unvested and previously suspended compensation awards. Deutsche Bank won't retrieve enough to boost capital meaningfully. But reassuring shareholders whose rewards have never matched employees' is still worthwhile.
Fund managers take long view by scrapping bonuses 23 Aug 2016 Star investor Neil Woodford is paying his staff fixed salaries, while former trade body head Daniel Godfrey is launching a trust on the same principle. Fund costs won't necessarily fall. But a bonus system can prompt unhelpful short-termism while ratcheting up overheads.
BBVA bonus cap a helpful check on fintech fever 22 Aug 2016 The Spanish bank has asked European lawmakers to let it pay technologists whatever variable compensation it deems fit. A rule limiting bonuses to twice base salaries makes more sense for traders than coders. But it could prevent BBVA veering from innovation lust into overpaying.
Credit Suisse special pay looks less than special 4 Jul 2016 The Swiss bank last year trebled extra awards it makes to hire or retain star recruits. The boost partly fits the change in management and compensation philosophy under boss Tidjane Thiam. Still, too many were given too much at a time when industry profitability is wilting.