Deutsche Bank to cut costs, change pay practices

[September 11, 2012]  FRANKFURT, Germany (AP) -- Deutsche Bank is announcing plans to cut costs, get rid of risky investments and stretch executive bonuses over a longer period.

The shakeup follows a 100-day review by new co-CEOs Juergen Fitschen and Anshu Jain.

The steps are aimed at getting the bank ready for a new, tougher environment: more regulation, a shaky global economy, and public hostility to excessive pay practices.

The bank says it will reduce bonus payments and pay deferred compensation to top management in a single payment after five years, rather than periodic payments over three years.

Deutsche Bank also plans to reduce costs by euro4.5 billion a year by 2015. It will also trim euro45 billion in investments in it no longer considers essential by 2013.

[Associated Press]

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