Employees regulated under the InstitutsVergV


Employee pyramid, condifurther Regulated Employees highlighted (graphic)

In accordance with the InstitutsVergV we are required to identify all employees whose work is deemed to have a major influence on the overall risk profile of the Group. The SECC has overseen the identification process in respect of 2012 which incorporated both qualitative and quantitative analysis. The process identified the following employee populations:

  • Management Board, Group Executive Committee, Regional Management and Board Executive (“Geschäftsleiter”) of significant Group Subsidiaries;
  • Senior Management responsible for day to day management of front office businesses and large country hubs;
  • staff responsible for independent control functions and members of global Infrastructure Committees;
  • all Managing Directors in CB&S (excluding Research and German MidCaps);
  • if not already identified, all other employees with similar remuneration to those captured under the above criteria.

On a global basis, 1,215 employees were identified as Regulated Employees, spanning 36 countries. This represents a reduction compared to 2011 primarily as a result of identifying fewer Managing Directors in CB&S and an overall reduction in Variable Compensation. Despite this, we expect the number to remain significantly higher than the majority of our principle competitors, both from an absolute level and percentage of the total employee population.

Compensation Structures for Regulated Employees

Regulated Employees are subject to the same deferral matrix as the general employee population, save for the requirement that at least 40 % of Variable Compensation must be deferred. If a Regulated Employee’s Variable Compensation does not trigger 40 % deferral under the Group’s global matrix then the matrix is overridden to ensure the regulatory obligations are met. On average, however, Regulated Employees are subject to deferral rates in excess of 70 % of their total Variable Compensation awards. This is well in excess of the minimum 40 % – 60 % regulatory requirements and is a voluntary decision by us.

All Regulated Employees receive 50 % of their deferred Variable Compensation in the form of an REA and 50 % as an RIA. Upon the vesting of each REA tranche, a further minimum six-month retention period applies during which time employees are not permitted to sell the shares. Whilst the specific performance clawback conditions outlined in the Group disclosure section do not apply during the retention period, employees can still forfeit the award if they are subject to termination for Cause.

In accordance with Section 5 InstitutsVergV regulations, 50 % of the upfront award (the remaining portion after the deferred percentage is calculated) is also awarded in equity (EUA). At award, the equity is subject to a minimum six-month retention period during which time the shares cannot be sold. Adding the EUA to the deferred portion of the award means that on average Regulated Employees received less than 15 % of their 2012 Variable Compensation as an immediate cash payment (i.e. deferral rates in excess of 85 %).

EUAs are subject to the Breach of Policy conditions during the retention period and will also be forfeited if employees leave the Group voluntarily.

Compensation Disclosure pursuant to Section 8 InstitutsVergV

As described above, we have developed and refined a structured and comprehensive approach in order to identify Regulated Employees in accordance with the InstitutsVergV requirements. The collective compensation elements for this population of employees are detailed in the table below. All Management Board members and Board members of our other "significant institutions" per Section 1 InstitutsVergV are included in the Geschäftsleiter column.

 

2012

in € m.
(unless stated otherwise)1

CB&S

GTB

AWM

PBC

Geschäftsleiter (Significant Institutions)

NCOU

Group Total

1

Excluding Postbank.

2

Upfront equity portion of Upfront Awards may be less than 50 % due to the impact of local legal requirements and tax legislation.

3

Including guarantees.

4

Sign-on payments have been disclosed collectively for the Group with the exception of CB&S in order to safeguard employee confidentiality due to the low number of recipients.

Total Compensation

1,375

44

84

25

75

16

1,618

number of employees

1,086

26

42

15

36

10

1,215

thereof Fixed Compensation

339

9

15

5

20

3

391

thereof Variable Compensation

1,036

35

68

19

56

13

1,227

Variable Compensation

 

 

 

 

 

 

 

thereof Deferred Awards

779

28

57

15

47

10

936

thereof Deferred Equity

390

14

28

8

23

5

468

thereof Upfront Awards

257

7

12

4

9

2

290

thereof Upfront Equity2

125

3

6

2

4

1

141

thereof Awards subject to clawback

904

31

62

17

51

11

1,077

thereof Awards subject to sustained performance metrics

779

28

57

15

47

10

936

Sign On payments3,4

34

34

number of beneficiaries

25

26

Termination payments

22

15

25

61

number of beneficiaries

91

7

3

101

All figures in the above table include the allocation of Infrastructure-related compensation or number of employees according our established cost allocation key. The table contains marginal rounding differences.

Our management structure and personnel was subject to significant change during 2012. All payments made to senior employees on the termination of their employment were made in recognition of their sustained commitment and personal contribution to the success of the Group over a period of time. Of the total value of termination settlements published above, the largest single award was approximately € 10.4 million (based on the foreign exchange rate on the date of payment) which represented a former contractual obligation.

All deferred awards and the EUA are subject to clawback following a policy or regulatory breach by the employee. In addition, all deferred awards are subject to clawback provisions linked to the performance of the employee, the respective corporate division and the Group as a whole. During the course of 2012, no clawback was applied towards Regulated Employees.

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