Deutsche Bank Annual Report 2017 - Material Risk Taker Compensation Disclosure

On a global basis, 1,795 employees were identified as Material Risk Takers according to InstVV for financial year 2017, compared to 3,056 employees for 2016. The decline can mainly be attributed to the limited total amount of VC granted for 2016, affecting the quantitative criteria as stipulated under the Commission Delegated Regulation (EU) No. 604/2014.

The remuneration elements for all MRTs identified according to InstVV are detailed in the table below in accordance with Section 16 InstVV and Article 450 CRR. Material Risk Takers and high earners (employees receiving a Total Pay of € 1 million or more) from Postbank are not part of this disclosure and instead included in the compensation report of Postbank. The quantitative disclosure for Material Risk Takers also reflects the employee transfers from infrastructure to business divisions as outlined in the chapter “Compensation Decisions for 2017”, and includes the full value of the Retention Award Program granted to MRTs.

Aggregate remuneration for Material Risk Takers according to InstVV

2017

2016

Business Units

in € m.
(unless stated otherwise)¹

Senior Management²

CIB

PCB

Deutsche AM

Independent Control Functions³

Corporate Functions⁴

Group Total

1	Figures may include rounding differences. Buyouts not included; Postbank employees and remuneration not included.
2	Refers to Management Board members (including Deutsche Bank AG) and Executive Directors of significant institutions within the meaning of Section 17 InstVV and any other members of the “Senior Leadership Cadre”. Supervisory Board Members / Non-Executive Directors of significant institutions are also included in “Senior Management” headcount (thereof 60) and FTE (thereof 58). In case they have only been identified as MRTs due to their Supervisory Board role, they are not included in any other lines as they receive no variable remuneration elements for these activities and as their fixed compensation elements for this role are not meaningful. However, Deutsche Bank AG Supervisory Board members are included in “Senior Management” Total Fixed Pay.
3	In accordance with regulatory guidance, “Independent Control Functions” for the purposes of this table include the areas of the Chief Risk Officer, Group Audit, Compliance, Anti-Financial Crime, and Human Resources (Central and Regional). Additionally, Deutsche Bank considers the following infrastructure functions as “Independent Control Functions”: Legal, Global Governance, Group Incident & Investigation Management, Chief Information Security Office, Group Finance, Group Tax, and Regulatory Affairs. All of these functions are subject to a fixed to variable remuneration ratio of 1:1.
4	“Corporate Functions” comprise any infrastructure function that is neither captured as an Independent Control Function nor part of any division for the purposes of this table. This includes, for instance, the areas of the Chief Operating Officer and Corporate Social Responsibility.
5	The Retention Award Program is included in the Variable Pay figures in this table.
6	Taking into account risk adjustments and resignations, outstanding Variable Pay for MRTs amounting to € 122 million was forfeited in 2017.
7	Severance payments are generally paid out in the year in which they have been granted.

Number of MRTs (headcount)

231

990

188

239

1,795

3,056

Number of MRTs (FTE)

226

984

183

232

1,772

3,047

Total Pay

477

1,468

136

101

130

2,359

1,648

Total Fixed Pay

208

583

981

1,438

Total Variable Pay for period

269

886

1,379

210

thereof:

Retention Award Program (Jan 2017)⁵

540

thereof:

in cash

133

444

683

134

in shares

136

442

689

in other types of instruments

Total Variable Pay for period, deferred

217

733

1,087

106

thereof:

in cash

106

367

535

in shares

110

367

545

in other types of instruments

Article 450 (1) h(iii) of the CRR in conjunction with article 450 (1) h(iv) of the CRR on deferred variable remuneration from previous years and on explicit risk adjustments

Total amount of variable pay still outstanding at the beginning of the year that was deferred in previous years

476

997

108

130

1,783

2,318

thereof:

vested

171

424

704

1,009

unvested

306

573

1,079

1,309

Deferred Variable Pay awarded, paid out or reduced during period

awarded during period

158

497

762

1,160

paid out during period

118

415

639

725

reduced through explicit risk adjustments⁶

Article 450 (1) h(v) of the CRR on hiring bonuses

Number of beneficiaries of guaranteed variable remuneration (hiring bonuses)

Total amount of guaranteed variable pay (hiring bonuses)

Article 450 (1) h(v) and (vi) of the CRR on severance payments

Total amount of severance payments granted7

Number of beneficiaries of severance payments granted by headcount

114

Highest severance payment granted to an individual

Remuneration of high earners

2017

in €

Number of employees (excluding Retention Award Program)¹

1	Postbank employees not included. Buyouts not included. When considering the Retention Award Program with the full amount granted in January 2017, the total of high earners for 2017 would amount to 1,098 employees.

Total Pay

1,000,000 to 1,499,999

330

1,500,000 to 1,999,999

155

2,000,000 to 2,499,999

2,500,000 to 2,999,999

3,000,000 to 3,499,999

3,500,000 to 3,999,999

4.000,000 to 4,499,999

4,500,000 to 4,999,999

5,000,000 to 5,999,999

6,000,000 to 6,999,999

7,000,000 to 7,999,999

8,000,000 to 8,999,999

9,000,000 to 9,999,999

10,000,000 to 10,999,999

Total

705

In total, 705 employees received a Total Pay of € 1 million or more for 2017, compared to 316 employees in 2016 and 756 employees in 2015.