Deutsche board paid €55m bonus

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Deutsche Bank's board of managing directors received 10 times as much in bonus payments as salary last year. Bonuses totalled €55m ($50m), compared with basic salaries of €5.5m.

The breakdown of the eight board members' total remuneration of €63.4m, an average of €7.9m each, was revealed in the German bank's filing last week with the Securities and Exchange Commission (SEC) ahead of its US listing. On top of these payments, the board members also received share-based compensation in the form of option plans and convertible bonds.

The filing did not contain any details of individual directors' pay, which is a sensitive subject in Germany. Rolf Breuer, chairman of Deutsche Bank, said at the European Corporate Finance Convention in July that disclosure could have undesirable consequences, because there was too much envy in Germany society. He said if he worked in the US, he would be happy to disclose his pay.

Most of the bonus payments are likely to have gone to Josef Ackermann, the head of investment banking and Breuer's appointed successor the late Edson Mitchell, head of global markets and Michael Philipp, head of asset management. The SEC filing also shows that Philipp sold 20,000 Deutsche shares in May, which would have raised about €1.8m.

In 2000, Deutsche reported record profits, with the biggest contribution coming from its corporate and investment banking division, which made €4bn after tax. This was followed by the corporate and property division at €1bn Deutsche Asset Management contributed €703m.

The latest bonuses do not include the €31m paid to former members of the management board or their surviving dependents. This figure would have included payment to dependents of Edson Mitchell, responsible for building the bank's global markets business, who died last December.

Credit Suisse Group, which listed in the US last week, paid Sfr168.8m (€114.1m) in aggregate compensation, including cash bonus and equity awards, to its directors and officers last year. The payment was divided among the current 18 senior executives of the board of directors, the group executive board and eight executives who resigned, equating to an average of €4.4m each. The Credit Suisse figures include payments to Allen Wheat, the sacked chief executive of Credit Suisse First Boston, but exclude John Mack, who replaced him in July.