German Bank: Shareholders reject new executive salaries from – SPIEGEL ONLINE

The new remuneration system for the Management Board of Deutsche Bank has flunked the shareholders. Only 48 percent of the capital represented at the meeting approved the guidelines, said supervisory board chairman Paul Achleitner with after the vote. The vote of the shareholders is not binding. Achleitner has made it clear that the bank will take into account the opinion of shareholders in the compensation system.

Several influential shareholder advisers had recommended to reject the new system. This governs primarily the bonuses new. Thereafter, the new Investment Banking CEO Jeff Urwin can future at best earn more than CEO John Cryan. In a brilliant year for his division, he can come up to 13.2 million euros. For Cryan the upper limit is 12.5 million. In a “normal year” of abgeworbene JPMorgan investment banker Urwin comes with 8.5 million euros zoom almost Cryans content.

Since the renovation of the Executive Board also four heads of operational divisions there are represented. With them, the variable compensation depend not only on the short- and long-term success of the entire bank, but also on how to cut their lines in that year.

Salaries capped

for the current year, the Supervisory Board capped the salaries of all the boards on each 9.85 million euros – as in previous years. That they reach the amount that is given the bleak outlook for the sector but unlikely. 2015 German bank was considering a loss of nearly seven billion euros deleted all variable payments to board members.

Cryans basic salary remains even after the new system was 3.8 million euros. It is the highest fixed salary for one of the 30 DAX companies. The remaining German bank board members each get guaranteed 2.4 million euros.

shareholders stand behind Cryan

The shareholders stood at the AGM behind Cryan. They agreed to the relief of the summer since 2015 incumbent CEOs with 98 percent. Supervisory Board Chairman Paul Achleitner, however, was relieved only by almost 87 percent. Approval ratings of less than 90 percent are rare in German companies.

A year ago, we voted on the control panel as a whole, yet 91 percent of the capital represented had given the green light. This year, the German bank took the vote individually on the discharge of the supervisory boards.

Cryans new fellow board members received similar approval ratings as the CEO. The exchanged last year board members, however, were relieved only with results 83-85 percent, as well as the outgoing Co-CEO Juergen Fitschen.

Legally, the relief of top managers of little importance. However, a bad result is a clear vote of no confidence of shareholders.