Management Board Compensation

Principles

At the end of January 2015, the Compensation Control Committee discussed in detail and prepared for the Supervisory Board as a plenary the resolution of the Supervisory Board on the determination of the Variable Compensation for Management Board members. Particular focus was placed on reviewing the appropriateness of the compensation in a horizontal analysis vis-à-vis the Bank’s competitors, as well as in vertical analysis per the German Corporate Governance Codex requirements. In the context of this comparative review, the appropriateness of the compensation was reviewed with respect to:

  • the ratio of fixed to variable compensation;
  • the ratio of short-term to long-term compensation elements;
  • the ratio of immediately due to deferred compensation elements; and
  • the ratio of immediately vested compensation elements to compensation elements subject to forfeiture conditions.

In addition, the appropriateness of the total amount of compensation in relation to the average income of the employees was considered.

Base Salary

In the 2014 financial year, the annual base salary of the Management Board Co-Chairmen was € 3,800,000 each and for an ordinary Management Board member € 2,400,000.

Variable Compensation

The Supervisory Board, based on the proposal of the Compensation Control Committee, determined the Variable Compensation for the Management Board members for the 2014 financial year. When calculating and determining the amount of the APA and the LTPA, the Supervisory Board, above all, adequately considered individual Management Board members’ contributions to the Bank’s revenue, in addition to the Group’s overall results. For this purpose, the individual contribution to the Bank’s revenue was determined on the basis of the achievement of agreed objectives and was assessed separately for each member of the Management Board.

Total Compensation

The members of the Management Board collectively received in/for the 2014 financial year compensation (without fringe benefits and pension service costs) totalling € 35,277,666 (2013: € 38,496,509) for their service on the Management Board. Of that, € 19,600,000 (2013: € 10,350,000) was for base salaries, € 15,677,666 (2013: € 27,096,509) for performance-related components with long-term incentives and € 0 (2013: € 1,050,000) for performance-related components without long-term incentives.

The Supervisory Board determined the aforementioned compensation on an individual basis for 2014 as follows:

 

2014

2013

in €

Base salary

APA1

LTPA2

Total com­pensation

Total com­pensation

1

APA = Annual Performance Award/value including premium of 2 %.

2

LTPA = Long-Term Performance Award.

Jürgen Fitschen

3,800,000

860,625

2,001,333

6,661,958

7,474,597

Anshuman Jain

3,800,000

860,625

2,001,333

6,661,958

7,474,597

Stefan Krause

2,400,000

688,500

1,264,000

4,352,500

4,676,415

Dr. Stephan Leithner

2,400,000

803,250

1,264,000

4,467,250

4,706,250

Stuart Lewis

2,400,000

765,000

1,264,000

4,429,000

4,671,825

Rainer Neske

2,400,000

688,500

1,264,000

4,352,500

4,821,000

Henry Ritchotte

2,400,000

688,500

1,264,000

4,352,500

4,671,825

Total

19,600,000

5,355,000

10,322,666

35,277,666

38,496,509

Compensation in accordance with the German Corporate Governance Codex (GCGC)

The compensation for the members of the Management Board in accordance with the requirements of section 4.2.5 paragraph 3 of the GCGC is provided below. This comprises the benefits granted for the year under review including the fringe benefits, and including the maximum and minimum achievable compensation for variable compensation components. In addition, the disbursals of fixed compensation, short-term variable compensation and long-term variable compensation in/for the year under review, broken down into the relevant reference years are reported.

The following table provides the compensation granted for the 2014 financial year:

Compensation granted in 2014 (2013) according to GCGC

 

Jürgen Fitschen
Co-Chairman

1

Without fringe benefits and pension service costs.

in €

2014 (grant)

2014 (target)

2014 (Min)

2014 (Max)

2013 (grant)

2013 (target)

Fixed compensation (base salary)

3,800,000

3,800,000

3,800,000

3,800,000

2,300,000

2,300,000

Fringe benefits

118,852

118,852

118,852

118,852

236,590

236,590

Total

3,918,852

3,918,852

3,918,852

3,918,852

2,536,590

2,536,590

One-year variable compensation

0

0

0

0

150,000

150,000

thereof:

 

 

 

 

 

 

Immediately paid out (part of APA)

0

0

0

0

150,000

150,000

Multi-year variable compensation

2,861,958

5,300,000

0

8,700,000

5,024,597

6,750,000

thereof:

 

 

 

 

 

 

Equity Upfront Awards (part of APA)

0

0

0

0

150,000

150,000

Restricted Incentive Awards (APA)

860,625

1,500,000

0

3,000,000

1,347,930

2,000,000

Restricted Equity Awards (LTPA)

2,001,333

3,800,000

0

5,700,000

3,526,667

4,600,000

Total

2,861,958

5,300,000

0

8,700,000

5,174,597

6,900,000

Pension service costs

648,216

648,216

648,216

648,216

290,457

290,457

Total compensation (GCGC)

7,429,026

9,867,068

4,567,068

13,267,068

8,001,644

9,727,047

Total compensation1

6,661,958

9,100,000

3,800,000

12,500,000

7,474,597

9,200,000

 

Anshuman Jain
Co-Chairman

in €

2014 (grant)

2014 (target)

2014 (Min)

2014 (Max)

2013 (grant)

2013 (target)

1

Without fringe benefits and pension service costs.

Fixed compensation (base salary)

3,800,000

3,800,000

3,800,000

3,800,000

2,300,000

2,300,000

Fringe benefits

718,914

718,914

718,914

718,914

804,032

804,032

Total

4,518,914

4,518,914

4,518,914

4,518,914

3,104,032

3,104,032

One-year variable compensation

0

0

0

0

150,000

150,000

thereof:

 

 

 

 

 

 

Immediately paid out (part of APA)

0

0

0

0

150,000

150,000

Multi-year variable compensation

2,861,958

5,300,000

0

8,700,000

5,024,597

6,750,000

thereof:

 

 

 

 

 

 

Equity Upfront Awards (part of APA)

0

0

0

0

150,000

150,000

Restricted Incentive Awards (APA)

860,625

1,500,000

0

3,000,000

1,347,930

2,000,000

Restricted Equity Awards (LTPA)

2,001,333

3,800,000

0

5,700,000

3,526,667

4,600,000

Total

2,861,958

5,300,000

0

8,700,000

5,174,597

6,900,000

Pension service costs

857,192

857,192

857,192

857,192

692,433

692,433

Total compensation (GCGC)

8,238,064

10,676,106

5,376,106

14,076,106

8,971,062

10,696,465

Total compensation1

6,661,958

9,100,000

3,800,000

12,500,000

7,474,597

9,200,000

 

Stefan Krause

in €

2014 (grant)

2014 (target)

2014 (Min)

2014 (Max)

2013 (grant)

2013 (target)

1

Without fringe benefits and pension service costs.

Fixed compensation (base salary)

2,400,000

2,400,000

2,400,000

2,400,000

1,150,000

1,150,000

Fringe benefits

124,753

124,753

124,753

124,753

105,609

105,609

Total

2,524,753

2,524,753

2,524,753

2,524,753

1,255,609

1,255,609

One-year variable compensation

0

0

0

0

150,000

150,000

thereof:

 

 

 

 

 

 

Immediately paid out (part of APA)

0

0

0

0

150,000

150,000

Multi-year variable compensation

1,952,500

3,400,000

0

5,600,000

3,376,415

4,350,000

thereof:

 

 

 

 

 

 

Equity Upfront Awards (part of APA)

0

0

0

0

150,000

150,000

Restricted Incentive Awards (APA)

688,500

1,000,000

0

2,000,000

926,415

1,200,000

Restricted Equity Awards (LTPA)

1,264,000

2,400,000

0

3,600,000

2,300,000

3,000,000

Total

1,952,500

3,400,000

0

5,600,000

3,526,415

4,500,000

Pension service costs

521,887

521,887

521,887

521,887

340,985

340,985

Total compensation (GCGC)

4,999,140

6,446,640

3,046,640

8,646,640

5,123,009

6,096,594

Total compensation1

4,352,500

5,800,000

2,400,000

8,000,000

4,676,415

5,650,000

 

Dr. Stephan Leithner

in €

2014 (grant)

2014 (target)

2014 (Min)

2014 (Max)

2013 (grant)

2013 (target)

1

Without fringe benefits and pension service costs.

Fixed compensation (base salary)

2,400,000

2,400,000

2,400,000

2,400,000

1,150,000

1,150,000

Fringe benefits

353,552

353,552

353,552

353,552

119,905

119,905

Total

2,753,552

2,753,552

2,753,552

2,753,552

1,269,905

1,269,905

One-year variable compensation

0

0

0

0

150,000

150,000

thereof:

 

 

 

 

 

 

Immediately paid out (part of APA)

0

0

0

0

150,000

150,000

Multi-year variable compensation

2,067,250

3,400,000

0

5,600,000

3,406,250

4,350,000

thereof:

 

 

 

 

 

 

Equity Upfront Awards (part of APA)

0

0

0

0

150,000

150,000

Restricted Incentive Awards (APA)

803,250

1,000,000

0

2,000,000

956,250

1,200,000

Restricted Equity Awards (LTPA)

1,264,000

2,400,000

0

3,600,000

2,300,000

3,000,000

Total

2,067,250

3,400,000

0

5,600,000

3,556,250

4,500,000

Pension service costs

561,694

561,694

561,694

561,694

360,800

360,800

Total compensation (GCGC)

5,382,496

6,715,246

3,315,246

8,915,246

5,186,955

6,130,705

Total compensation1

4,467,250

5,800,000

2,400,000

8,000,000

4,706,250

5,650,000

 

Stuart Lewis

in €

2014 (grant)

2014 (target)

2014 (Min)

2014 (Max)

2013 (grant)

2013 (target)

1

Without fringe benefits and pension service costs.

Fixed compensation (base salary)

2,400,000

2,400,000

2,400,000

2,400,000

1,150,000

1,150,000

Fringe benefits

84,937

84,937

84,937

84,937

89,844

89,844

Total

2,484,937

2,484,937

2,484,937

2,484,937

1,239,844

1,239,844

One-year variable compensation

0

0

0

0

150,000

150,000

thereof:

 

 

 

 

 

 

Immediately paid out (part of APA)

0

0

0

0

150,000

150,000

Multi-year variable compensation

2,029,000

3,400,000

0

5,600,000

3,371,825

4,350,000

thereof:

 

 

 

 

 

 

Equity Upfront Awards (part of APA)

0

0

0

0

150,000

150,000

Restricted Incentive Awards (APA)

765,000

1,000,000

0

2,000,000

921,825

1,200,000

Restricted Equity Awards (LTPA)

1,264,000

2,400,000

0

3,600,000

2,300,000

3,000,000

Total

2,029,000

3,400,000

0

5,600,000

3,521,825

4,500,000

Pension service costs

551,095

551,095

551,095

551,095

351,335

351,335

Total compensation (GCGC)

5,065,032

6,436,032

3,036,032

8,636,032

5,113,004

6,091,179

Total compensation1

4,429,000

5,800,000

2,400,000

8,000,000

4,671,825

5,650,000

 

Rainer Neske

in €

2014 (grant)

2014 (target)

2014 (Min)

2014 (Max)

2013 (grant)

2013 (target)

Fixed compensation (base salary)

2,400,000

2,400,000

2,400,000

2,400,000

1,150,000

1,150,000

1

Without fringe benefits and pension service costs.

Fringe benefits

96,155

96,155

96,155

96,155

104,900

104,900

Total

2,496,155

2,496,155

2,496,155

2,496,155

1,254,900

1,254,900

One-year variable compensation

0

0

0

0

150,000

150,000

thereof:

 

 

 

 

 

 

Immediately paid out (part of APA)

0

0

0

0

150,000

150,000

Multi-year variable compensation

1,952,500

3,400,000

0

5,600,000

3,521,000

4,350,000

thereof:

 

 

 

 

 

 

Equity Upfront Awards (part of APA)

0

0

0

0

150,000

150,000

Restricted Incentive Awards (APA)

688,500

1,000,000

0

2,000,000

1,071,000

1,200,000

Restricted Equity Awards (LTPA)

1,264,000

2,400,000

0

3,600,000

2,300,000

3,000,000

Total

1,952,500

3,400,000

0

5,600,000

3,671,000

4,500,000

Pension service costs

539,553

539,553

539,553

539,553

348,352

348,352

Total compensation (GCGC)

4,988,208

6,435,708

3,035,708

8,635,708

5,274,252

6,103,252

Total compensation1

4,352,500

5,800,000

2,400,000

8,000,000

4,821,000

5,650,000

 

Henry Ritchotte

in €

2014 (grant)

2014 (target)

2014 (Min)

2014 (Max)

2013 (grant)

2013 (target)

1

Without fringe benefits and pension service costs.

Fixed compensation (base salary)

2,400,000

2,400,000

2,400,000

2,400,000

1,150,000

1,150,000

Fringe benefits

289,842

289,842

289,842

289,842

132,370

132,370

Total

2,689,842

2,689,842

2,689,842

2,689,842

1,282,370

1,282,370

One-year variable compensation

0

0

0

0

150,000

150,000

thereof:

 

 

 

 

 

 

Immediately paid out (part of APA)

0

0

0

0

150,000

150,000

Multi-year variable compensation

1,952,500

3,400,000

0

5,600,000

3,371,825

4,350,000

thereof:

 

 

 

 

 

 

Equity Upfront Awards (part of APA)

0

0

0

0

150,000

150,000

Restricted Incentive Awards (APA)

688,500

1,000,000

0

2,000,000

921,825

1,200,000

Restricted Equity Awards (LTPA)

1,264,000

2,400,000

0

3,600,000

2,300,000

3,000,000

Total

1,952,500

3,400,000

0

5,600,000

3,521,825

4,500,000

Pension service costs

530,086

530,086

530,086

530,086

344,689

344,689

Total compensation (GCGC)

5,172,428

6,619,928

3,219,928

8,819,928

5,148,884

6,127,059

Total compensation1

4,352,500

5,800,000

2,400,000

8,000,000

4,671,825

5,650,000

The following table provides the disbursals in/for the 2014 financial year:

Disbursals paid out in 2014 (2013) according to GCGC

 

Jürgen Fitschen
Co-Chairman

Anshuman Jain
Co-Chairman

Stefan Krause

Dr. Stephan Leithner

in €

2014

2013

2014

2013

2014

2013

2014

2013

Fixed compensation

3,800,000

2,300,000

3,800,000

2,300,000

2,400,000

1,150,000

2,400,000

1,150,000

Fringe benefits

118,852

236,590

718,914

804,032

124,753

105,609

353,552

119,905

Total

3,918,852

2,536,590

4,518,914

3,104,032

2,524,753

1,255,609

2,753,552

1,269,905

One-year variable compensation

0

150,000

0

150,000

0

150,000

0

150,000

thereof immediately paid out

0

150,000

0

150,000

0

150,000

0

150,000

Multi-year variable compensation

420,542

1,642,906

829,761

4,425,616

446,444

2,017,466

0

0

thereof Equity Upfront Awards:

 

 

 

 

 

 

 

 

EUA for 2010 (until 2014)

420,542

0

829,761

0

446,444

0

0

0

thereof Restricted Incentive Awards:

 

 

 

 

 

 

 

 

RIA for 2011 (until 2016)

0

356,221

0

1,051,846

0

356,221

0

0

RIA for 2010 (until 2015)

0

199,943

0

1,091,853

0

212,257

0

0

RIA for 2009 (until 2013)

0

68,480

0

234,988

0

91,306

0

0

thereof Restricted Equity Awards:

 

 

 

 

 

 

 

 

REA for 2009 (until 2013)

0

1,018,262

0

2,046,929

0

1,357,682

0

0

Total

420,542

1,792,906

829,761

4,575,616

446,444

2,167,466

0

150,000

Pension service costs

648,216

290,457

857,192

692,433

521,887

340,985

561,694

360,800

Total compensation (GCGC)

4,987,610

4,619,953

6,205,867

8,372,081

3,493,084

3,764,060

3,315,246

1,780,705

 

 

 

 

 

 

 

 

 

 

 

Stuart Lewis

Rainer Neske

Henry Ritchotte

in €

 

 

2014

2013

2014

2013

2014

2013

Fixed compensation

 

 

2,400,000

1,150,000

2,400,000

1,150,000

2,400,000

1,150,000

Fringe benefits

 

 

84,937

89,844

96,155

104,900

289,842

132,370

Total

 

 

2,484,937

1,239,844

2,496,155

1,254,900

2,689,842

1,282,370

One-year variable compensation

 

 

0

150,000

0

150,000

0

150,000

thereof immediately paid out

 

 

0

150,000

0

150,000

0

150,000

Multi-year variable compensation

 

 

0

0

433,493

1,649,063

0

0

thereof Equity Upfront Awards:

 

 

 

 

 

 

 

 

EUA for 2010 (until 2014)

 

 

0

0

433,493

0

0

0

thereof Restricted Incentive Awards:

 

 

 

 

 

 

 

 

RIA for 2011 (until 2016)

 

 

0

0

0

356,221

0

0

RIA for 2010 (until 2015)

 

 

0

0

0

206,100

0

0

RIA for 2009 (until 2013)

 

 

0

0

0

68,480

0

0

thereof Restricted Equity Awards:

 

 

 

 

 

 

 

 

REA for 2009 (until 2013)

 

 

0

0

0

1,018,262

0

0

Total

 

 

0

150,000

433,493

1,799,063

0

150,000

Pension service costs

 

 

551,095

351,335

539,553

348,352

530,086

344,689

Total compensation (GCGC)

 

 

3,036,032

1,741,179

3,469,201

3,402,315

3,219,928

1,777,059

In 2014, the Supervisory Board decided to suspend for all Management Board members the tranches of deferred compensation elements which were subject to non-forfeiture and/or disbursal in August 2014. Accordingly, the above table does not contain the respective compensation elements which were not disbursed (or delivered – in case of share based elements) in August 2014.

Compensation in accordance with the German Accounting Standard No. 17 (GAS 17)

In accordance with the requirements of the GAS 17, the members of the Management Board collectively received in the 2014 financial year compensation totalling € 31,709,671 (2013: € 36,890,500) for their service on the Management Board. Of that, € 19,600,000 (2013: € 10,350,000) was for base salaries, € 1,787,005 (2013: € 1,593,250) for fringe benefits, € 10,322,666 (2013: € 23,897,250) for performance-related components with long-term incentives and € 0 (2013: € 1,050,000) for performance-related components without long-term incentives.

In accordance with German Accounting Standard No. 17, the Restricted Incentive Awards, as a deferred, non-equity-based compensation component subject to certain (forfeiture) conditions, must be recognized in the total compensation for the year of their payment (i.e. in the financial year in which the unconditional payment takes place) and not in the year they are originally granted. Based on this the Management Board members individually received the following compensation components for their service on the Management Board for or in the years 2014 and 2013, including the non-performance-related fringe benefits and the service costs for pension benefits.

Compensation according to GAS 17

 

Jürgen Fitschen
Co-Chairman

Anshuman Jain
Co-Chairman

Stefan Krause

Dr. Stephan Leithner

in €

2014

2013

2014

2013

2014

2013

2014

2013

Compensation

 

 

 

 

 

 

 

 

Performance-related components

 

 

 

 

 

 

 

 

Without long-term incentives

 

 

 

 

 

 

 

 

Immediately paid out

0

150,000

0

150,000

0

150,000

0

150,000

With long-term incentives

 

 

 

 

 

 

 

 

Cash-based

 

 

 

 

 

 

 

 

Restricted Incentive Award(s) paid

0

624,644

0

2,378,687

0

659,784

0

0

Share-based

 

 

 

 

 

 

 

 

Equity Upfront Award(s)

0

150,000

0

150,000

0

150,000

0

150,000

Restricted Equity Award(s)

2,001,333

3,526,667

2,001,333

3,526,667

1,264,000

2,300,000

1,264,000

2,300,000

Non-performance-related components

 

 

 

 

 

 

 

 

Base salary

3,800,000

2,300,000

3,800,000

2,300,000

2,400,000

1,150,000

2,400,000

1,150,000

Benefits

 

 

 

 

 

 

 

 

Non-performance-related components

 

 

 

 

 

 

 

 

Fringe benefits

118,852

236,590

718,914

804,032

124,753

105,609

353,552

119,905

Pension service costs

648,216

290,457

857,192

692,433

521,887

340,985

561,694

360,800

Total (excl. Service costs)

5,920,185

6,987,901

6,520,247

9,309,386

3,788,753

4,515,393

4,017,552

3,869,905

Total (incl. Service costs)

6,568,401

7,278,358

7,377,439

10,001,819

4,310,640

4,856,378

4,579,246

4,230,705

 

 

 

 

 

 

 

 

 

 

Stuart Lewis

Rainer Neske

Henry Ritchotte

Total

in €

2014

2013

2014

2013

2014

2013

2014

2013

Compensation

 

 

 

 

 

 

 

 

Performance-related components

 

 

 

 

 

 

 

 

Without long-term incentives

 

 

 

 

 

 

 

 

Immediately paid out

0

150,000

0

150,000

0

150,000

0

1,050,000

With long-term incentives

 

 

 

 

 

 

 

 

Cash-based

 

 

 

 

 

 

 

 

Restricted Incentive Award(s) paid

0

0

0

630,801

0

0

0

4,293,916

Share-based

 

 

 

 

 

 

 

 

Equity Upfront Award(s)

0

150,000

0

150,000

0

150,000

0

1,050,000

Restricted Equity Award(s)

1,264,000

2,300,000

1,264,000

2,300,000

1,264,000

2,300,000

10,322,666

18,553,334

Non-performance-related components

 

 

 

 

 

 

 

 

Base salary

2,400,000

1,150,000

2,400,000

1,150,000

2,400,000

1,150,000

19,600,000

10,350,000

Benefits

 

 

 

 

 

 

 

 

Non-performance-related components

 

 

 

 

 

 

 

 

Fringe benefits

84,937

89,844

96,155

104,900

289,842

132,370

1,787,005

1,593,250

Pension service costs

551,095

351,335

539,553

348,352

530,086

344,689

4,209,723

2,729,051

Total (excl. Service costs)

3,748,937

3,839,844

3,760,155

4,485,701

3,953,842

3,882,370

31,709,671

36,890,500

Total (incl. Service costs)

4,300,032

4,191,179

4,299,708

4,834,053

4,483,928

4,227,059

35,919,394

39,619,551

In 2014, the Supervisory Board decided to suspend for all Management Board members the tranches of deferred compensation elements which were subject to non-forfeiture or due to vest in August 2014. Accordingly, the table above does not contain the Restricted Incentive Awards which were not disbursed in August 2014.

With respect to 2013, the total compensation amounts presented include the third tranche of the Restricted Incentive Awards granted in 2010 for the financial year 2009, totalling € 463,254; the second tranche of the Restricted Incentive Awards granted in 2011 for the financial year 2010, totalling € 1,710,153; and the first tranche of the Restricted Incentive Awards granted in 2012 for the financial year 2011, totalling € 2,120,509.


Key figures comparison

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