The highest paid employee of Deutsche Bank could earn almost twice as much as the executive director of Christian Sewing in 2024, given the increase of bonuses as a result of the increases of the profits in the investment bank, informs the Financial Times. The number of employees earning over 1 million euros increased by 28%, reaching 647 in 2024, compared to 505 in the previous year. This increase was determined by an advance of 78% of profits before taxation in the investment bank division, where the variable remuneration, related to performance, represents a significant part of the total salary. The total bonus fund of the bank has increased by 25%, reaching 2.5 billion euros, the largest increase registered since 2014. In contrast, the total salary of the bank increased by only 8%, reaching 11.1 billion euros, and the number of employees remained constant. Deutsche Bank does not reveal the identity of the highest paid employee, who is not part of the Board of Directors, but a source said that it received 18 million euros last year. In 2023, the employee with the highest salary earned between 14 and 15 million euros. Christian Sewing, the bank's executive director, will earn 9.8 million euros in 2024, an increase of 12% compared to the previous year. The bonuses for the members of the Board of Directors, established on Thursday in the annual report of the bank, are preliminary estimates, because changes have been made to the salary structure. The final wage packages could be larger or smaller, depending on the future performances of Deutsche Bank. Starting in 2024, the bank has linked the performance payments for the next three years, instead of the performance of the last three years. Thus, Sewing's salary could reach a maximum of 12 million euros. The final payments for 2024 of the members of the Board of Directors will be fully set only in 2026. If they meet 100% of the set goals, their long -term combined bonus will total 25.6 million euros, an increase from 19.8 million in 2023, when they reached only 77.5% of the objectives. Short -term bonuses decreased for most members of the board of directors, because they did not meet the individual objectives. The bonus of the administrative director Stefan Simon was reduced almost half, reaching 1 million euros, compared to 1.8 million euros in the previous year. The reduction took place after the bank was affected by an unexpected fee of 900 million euros for litigation, which refers to a long -term price of the price paid to shareholders when Deutsche Bank purchased the postbank retail creditor more than a decade ago. Also, the bonus of the risk director, Olivier Vigneron, was reduced by more than 20%. Last year, Deutsche Bank twice warned investors that loan losses will be greater than initial estimates, conflicting with the European Central Bank on risk management.
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