As a result of the 100-day strategy review following the change in Deutsche Bank’s senior management, we recognized the need for a profound cultural transformation. Our cultural change initiative takes into account insights gained from our dialogue with all of our stakeholders and from an employee survey, which gathered feedback from more than half of our global workforce.
The Management Board has formulated its cultural aspiration as follows: “We commit to a culture that aligns risks and rewards, attracts and develops talented individuals, fosters teamwork and partnership, and is sensitive to the society in which we operate.”
GEC members have direct lead roles in driving forward the ongoing work on cultural change, which reflects the great value we attach to changing our culture.
Integrity, operational discipline, teamwork
Three specific areas of focus are at the heart of our cultural change: absolute integrity in our dealings with clients, operational discipline and collaborating across functions. By instilling these values in all areas of the bank, we are creating a true “one-bank” culture.
The bank intends to ensure that its business practices and its code of conduct correspond to the highest ethical standards. We have continuously been strengthening our control environment for many years.
Our staff members have a key role to play in this cultural change, and their conduct must align with Deutsche Bank’s values. In 2012, we established a set of new principles for evaluating performance, for training and Staff development and for improving our feedback culture. Now, we are examining not just the achievement of set targets, but also how they are achieved.
Independent panel on compensation
As a core element of the wider cultural change initiative, the bank invited distinguished leaders from business and politics to advise the bank on the review of its compensation structures and practices. The panel’s objectives include benchmarking the bank’s compensation systems against best practices in the financial services industry and against current and expected regulatory requirements. The compensation panel is also intended to assist the bank in formulating core principles and minimum standards for future compensation structures and practices and in defining appropriate levels of transparency and disclosure. The panel’s recommendations already played a part in the compensation practices for 2012. The panel presented their final report to the Management Board and the Supervisory Board in March 2013.
We aim to be at the forefront of shaping the cultural change required in the financial sector and thus intend to regain lost trust. The Group Executive Committee therefore decided that the cultural priorities we identified will also be included in the objectives for our employees for 2013. Cultural change will be an integral element of the staff development, motivation and compensation programs we will be offering our employees in 2013 and beyond.