• Germany's news in English
 

Commerzbank slashes employee bonuses

Published: 15 Feb 2013 14:23 GMT+01:00

"As a consequence of the unsatisfactory net profit, variable remuneration as a whole for 2012 will be 17.2 percent lower than in the previous year," Commerzbank said in a statement.

Bonuses were cut by around 20 percent in the investment banking division alone. The move - which affects all employees including the executive board - helped bring down personnel costs last year by 5.3 percent to €3.96 billion ($5.3 billion) and came after a similar bonus cut of 12.1 percent in 2011.

"We are following a clear principle: the greater the responsibility, the lower the variable remuneration by comparison," Commerzbank said. Indeed, CEO Blessing had already informed the bank's supervisory board in December that he would forego "all his claims from variable remuneration for 2012," it added.

Germany's second-biggest lender confirmed its disappointing 2012 results, already released earlier this month. Net profit came out at only €6 million for the whole year compared with €638 million a year previously, after heavy write downs pushed it into the red in the fourth quarter.

However, underlying earnings, as measured by operating profit, increased to €1.2 billion in 2012 from €507 million. Last month, Commerzbank said it would axe 4,000-6,000 jobs - more than one in 10 of its workforce - over the coming three years as it tots up the toll from the financial and sovereign debt crisis.

Commerzbank shares were the biggest gainers on the Frankfurt stock exchange on Friday, adding 3.32 percent in a steady market.

AFP/kkf

The Local (news@thelocal.de)

Your comments about this article

Today's headlines
Elderly burglar foiled after losing glasses
Is Germany experiencing a pensioner crime wave? Photo: DPA

Elderly burglar foiled after losing glasses

One of Germany's oldest burglars has had to spend his 70th birthday in a police hospital after being caught during his latest break-in attempt. READ  

Nightclub owner bans 'aggressive' refugees
File photo: DPA

Nightclub owner bans 'aggressive' refugees

A Bavarian nightclub owner has introduced a ban on refugees after claiming that they were causing trouble in his establishment. READ  

Germans fathered by Allied soldiers speak out
Photos of one 'occupation child' and her parents. Photo: DPA

Germans fathered by Allied soldiers speak out

A quarter of a million Germans were fathered by Allied soldiers after the Second World War. Many have spent their lives not knowing their fathers and stigmatized by their own society. READ  

Supermarket meat needles were 'warning'
The woman speaks with her lawyer in the courtroom. Photo: DPA

Supermarket meat needles were 'warning'

A woman has admitted to a Lübeck court that she placed needles in meat packets in a supermarket in northern Germany, hoping to discourage them from eating mass-produced food. READ  

Train strikes
Drivers' walkout brings fresh rail misery
A man sits on a platform at Munich main station on Tuesday morning. Photo: DPA

Drivers' walkout brings fresh rail misery

The beginning of a six-day strike by train drivers on Tuesday left millions of people across Germany struggling to get to work on Monday morning. READ  

Jobtalk Germany
Are robots about to take away 18 million jobs?
Robots are set to wipe out large sectors of the work force. Photo:DPA

Are robots about to take away 18 million jobs?

A study commissioned by ING-Diba claims that 59 percent of Germany's work force could be replaced by machines and software in the coming decades. The impact on German society is set to be radical. READ  

Merkel defends BND against criticism
Angela Merkel. Photo: DPA

Merkel defends BND against criticism

Chancellor Angela Merkel defended the German intelligence agency (BND) on Monday amid growing criticism of her knowledge of the agency's activities from within her own government. READ  

Germany falls behind neighbours in hourly pay
Photo: DPA

Germany falls behind neighbours in hourly pay

The average hourly private sector pay in Germany increased slightly between 2013 and 2014, but the rate still lagged behind that in most of Germany’s neighbour states, according to data released on Monday. READ  

Germany braces for longest-ever rail strike
Photo: DPA

Germany braces for longest-ever rail strike

German train drivers found themselves under fire from industry and the government on Monday after announcing their longest walkout in the history of rail operator Deutsche Bahn. READ  

€15m of cocaine found in Aldi banana boxes
A stash of cocaine found in an Aldi banana box last year. Police discovered more hidden narcotics in banana boxes on Monday. Photo: DPA.

€15m of cocaine found in Aldi banana boxes

More than 300 kilograms of cocaine worth €15 million were discovered in Berlin-area Aldi supermarkets, hidden in cases of bananas, police reported on Monday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Five ways Germany falls short on gay rights
Travel
Giant tortoise found riding Munich rail
National
FCK CPS? A-OK with court
National
Germany's 'other genocide' in Africa
Politics
Opinion: Brexit's dangers for Germany
National
Minister shows off top Denglisch
Features
Smart kids all want to work for BMW
Features
Off to Norway at 18 km/hour
National
Arms firms get a 'must do better' mark on ethics
Sport
Bayern's anticlimactic 25th Bundesliga win
Gallery
German beer day: take the tour
Gallery
The smileys Germans love to text
National
Expats face Monday deadline to register to vote for UK election
Politics
A Greek learning politics in Germany
National
Germany's favourite baby names of 2014
National
Germany's 'very poor' lobbying record
Features
The battle of the "Gates of Berlin"
Politics
Merkel's 15 years at the top of German politics
National
VIDEO: Mario Draghi suffers anti-ECB confetti attack
Travel
Lowest of the low: how woman exploited Germanwings crash
Sport
Football and the €30,000 firework
Technology
Why scientists oppose killer robots
Features
Spice up asparagus season with The Local's serving suggestions
Technology
Electrifying 'Ostalgia'
National
Which city is Germany's worst for drivers?
National
Germanwings co-pilot 'searched suicide info'
National
'Cannibal cop' gets 8 years
Shutterstock
Sponsored Article
10 things you didn’t know about Zagreb (and why you should go)
National
Freed after 25 years on death row
National
Cologne Cathedral returns from space
Can the 'nightmare' of a pilot downing a plane be prevented?
Pupils mourn lost classmates
Sponsored Article
What expat parents should ask before choosing a school
National
LIVE: Co-pilot suspected of crashing plane
Is your workload 'out of control'? You're not alone...
Features
Paddy's Day, Berlin style
National
Why east Germans are happy to get it on on camera
National
What would you do with a 250-year-old pretzel?
Features
Just why is the German flag Schwarz, Rot, Gold?
Business & Money
Getting German workers and bosses thinking positive
National
Uplifting thoughts to get you through the last week of winter
National
Who wants the Olympics more - Hamburg or Berlin?
National
Last-minute drama of Germany's Eurovision 2015 entry
National
German photographer takes world's top prize
Features
Meet the woman getting Germans to drink more – and better – beer
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

7,122
jobs available
Toytown Germany
Germany's English-speaking crowd
?>