Deutsche Bank employees are prohibited from selling shares during their merger studies with Deutsche

Time:2019-03-26 12:24:57 Popular: Comment:0


Deutsche Bank employees are prohibited from selling shares during their merger studies with Deutsche Bank of Commerce


While Deutsche Bank is studying the merger of Deutsche Bank, its executives have been banned from selling any shares they hold in the bank, another blow to Deutsche Bank employees. Last year they lost more than half of their value because of delayed payment of shares.


Several insiders said that after the end of this month's mandatory ban, bankers trying to sell shares were blocked by compliance authorities and told that they had "violated employee trading policies" because the shares had been listed on Deutsche Bank's "internal conflict list". Earlier, two German banks disclosed that they had entered formal negotiations.


A spokesman said: "When the formal negotiations were announced, the staff stock transactions of Deutsche Bank and Deutsche Commercial Bank were subject to bank-wide restrictions to ensure full compliance with the relevant provisions. This is a standard practice for these situations, and has provided guidance for employees. Since then, the restrictions have narrowed to smaller groups.


More senior employees who are likely to participate in due diligence or access sensitive information have been told that their ban is indefinite and that Deutsche Bank's shares will remain on the "no-sell" list until the two companies resolve the merger in any way, according to people familiar with the matter.


Trading between Deutsche Chamber of Commerce and Deutsche Bank has been rumored for a long time, but controversy continues. The deal between the two sides reached its final stage last week after increasing pressure from the German government, which is worried about the stability of the German banking system. The deal will create the second largest bank in the eurozone, with 1.9 trillion euros in assets, 140,000 employees and 845 billion euros in deposits.


Although the ban is the standard procedure for any merger and acquisition involving Deutsche Bank, it is causing dissatisfaction among executives. In recent years, executive pay has fallen sharply.


Since the financial crisis, most bankers'bonuses have been paid in the form of stocks with a seven-year delay. Deutsche Bank shares fell 58% last year and have fallen more than 90% since the beginning of 2008.


Three years ago, almost all of Deutsche Bank's bonuses were cancelled because of huge losses, billions of dollars in misconduct fines and a painful restructuring.


Meanwhile, this week it was reported that most Executives'salaries at Deutsche Bank more than doubled in 2018. Garth Ritchie, head of investment banking, will also earn an additional 250,000 euros a month to oversee the group's withdrawal plans. By the end of 2020, Rich's income could increase by 9 million euros.


Deutsche Bank's annual report released on Friday showed that the bonus pool for ordinary employees was cut by 14% to 19 billion euros, while the total compensation of the management committee rose from 29.8 million euros in 2017 to 55.8 million euros. In 2018, Deutsche Bank's investment bank's pre-tax profit fell 52%, its revenue fell 8%, and its return on equity was less than 1%.

Deutsche Bank employees are prohibited from selling shares during their merger studies with Deutsche Bank of Commerce


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Label:Deutsche Bank