Deutsche Bank's Executive Compensation Surges Amid Profit Decline

In a striking display of executive remuneration, Deutsche Bank has reported a total compensation package of approximately EUR68.1 million for its ten-member board for the fiscal year 2024. This compensation comes despite a downturn in profits for the bank, raising eyebrows among observers and stakeholders alike.

The bank's CEO, Christian Sewing, is set to receive a salary increase, bringing his total earnings to around EUR9.75 million, placing him among the highest earners within the DAX index. This substantial pay rise occurs in the context of a reported decline in the bank's overall earnings, which fell by 7% year-on-year, down to nearly EUR5.3 billion before taxes, and a staggering 36% drop in net profit attributable to shareholders, which now stands at approximately EUR2.7 billion.

Despite the challenges faced in 2024, the compensation structure for the bank's executives has remained robust. A portion of the bonuses awarded will be contingent upon long-term performance metrics, with projections suggesting that the set targets will be fully met by 2026. In the previous year, the board's remuneration was reported at EUR58.3 million, with Sewing earning around EUR8.75 million.

Fabrizio Campelli, the head of the investment banking division, follows closely behind Sewing, with a total compensation nearing EUR9 million, reflecting the division's impressive 78% increase in pre-tax profits over the past year. This positive performance in investment banking has contributed to a larger bonus pool of EUR2.5 billion for employees, an increase from the previous year's EUR2 billion.

In total, 647 employees earned more than EUR1 million each, a significant rise from the 505 who reached this threshold in 2023. Notably, one employee surpassed Sewing's earnings, reportedly receiving between EUR17 million and EUR18 million, potentially including a severance package.

While the compensation figures for Deutsche Bank's top executives are considerable, they have drawn attention amidst the backdrop of declining profitability and ongoing challenges within the financial sector, including the need to compensate former Postbank shareholders who felt undervalued during Deutsche Bank's acquisition of the Bonn-based institution in 2010.