welt.de
Deutsche Bank Board Receives €68.1 Million Despite Profit Decline
Deutsche Bank's ten board members received €68.1 million in compensation for 2024, despite a 7 percent decrease in pre-tax profit and a 36 percent drop in shareholder profit to €2.7 billion; CEO Christian Sewing earned over €9.75 million; one employee received €17-€18 million.
- How did the performance of Deutsche Bank's Investment Bank affect employee compensation in 2024?
- The substantial increase in board member compensation contrasts with a 36 percent drop in shareholder profit to approximately €2.7 billion. This decline is attributed to compensation paid to former Postbank shareholders. The Investment Bank's 78 percent increase in pre-tax profit, however, fueled a larger bonus pool for employees, reaching €2.5 billion compared to €2.0 billion in 2023.
- What is the total compensation of Deutsche Bank's board members in 2024, and how does it compare to the bank's profit performance?
- Despite a 7 percent decrease in pre-tax profit to nearly €5.3 billion in 2024 compared to 2023, Deutsche Bank's ten board members received €68.1 million in total compensation. CEO Christian Sewing earned over €9.75 million, a significant increase from his €8.75 million in 2023. A portion of this compensation is performance-based and will be paid out later.
- What are the potential implications of the significant difference in compensation between top executives and one exceptionally high-paid employee, and what adjustments might be necessary in future compensation strategies?
- The significant discrepancy between executive compensation and overall bank profitability raises concerns about fairness and transparency. The large bonus for one employee (€17-€18 million), potentially including severance, further intensifies these concerns. Future compensation models should better align executive pay with bank performance and shareholder returns.
Cognitive Concepts
Framing Bias
The article frames the story around the high executive compensation, placing it at the forefront. The headline likely emphasizes the high compensation figures. This framing might lead readers to focus on the compensation rather than the bank's overall financial performance, potentially leading to public criticism or negative perception. The focus on the highest earner, exceeding even the CEO, further emphasizes the potentially excessive compensation.
Language Bias
The article uses loaded language such as "Millionenvergütung" (million-euro compensation) and "üppiger gefüllt" (more lavishly filled) which carries a negative connotation. The description of one employee's compensation as eclipsing even the CEO's is also charged. More neutral phrasing might include 'compensation', 'increased', and 'high earning employee'.
Bias by Omission
The article focuses heavily on executive compensation but omits discussion of the overall financial health of the bank beyond the profit decrease. It mentions the decrease in profit for shareholders but doesn't elaborate on the bank's overall financial position, potential impact on customers or other stakeholders, or the reasons behind the decrease beyond the Postbank compensation.
False Dichotomy
The article presents a false dichotomy by highlighting the high executive compensation alongside the profit decrease, implying a direct conflict. It doesn't explore the possibility that the executive compensation is justified by performance in other areas or that the profit decrease is unrelated to executive decisions.
Gender Bias
While the article mentions both male and female employees receiving bonuses, it lacks specific details about gender representation among executives and employees receiving over 1 million Euro. There's no analysis of gender pay gaps or potential gender bias in bonus distribution. More information is needed to properly assess gender bias.
Sustainable Development Goals
The article highlights significant executive compensation at Deutsche Bank (68.1 million euros for 10 board members in 2024), despite a 7% decrease in pre-tax profit and a 36% drop in shareholder profit. This disparity between executive pay and overall company performance exacerbates income inequality. The mention of a single employee receiving 17-18 million euros further underscores this imbalance. While bonuses for other employees increased, the vast difference in compensation between executives and the average employee points to a widening income gap, counteracting efforts towards reducing inequality.