FRANKFURT, Jan 19 (Reuters) - Deutsche Bank is raising fixed salaries for staff and cutting variable pay, Germany's flagship lender said on Tuesday as regulators and politicians pursue a clampdown on bonuses.
Deutsche Bank said the move arose from a review to ensure pay 'remains competitive'.
Fixed pay for 2010 will be calculated using an average based on revenues from the years 2007 -- a very good year for investment banking revenues -- and 2008, a person familiar with the matter said.
Overall compensation for employees is not expected to rise as a result of the change between fixed and variable components, the person said.
Britain has announced a one-off levy which will tax bonuses by 50 percent in the 2009 bonuses round.
U.S. President Barack Obama last week outlined proposals for Wall Street banks to pay up to $117 billion to reimburse taxpayers for a bailout..
France in December announced plans to clamp down on trader bonuses.
News of the change in Deutsche Bank's remuneration policy was first reported in German daily Handelsblatt.
(Editing by Jon Loades-Carter) Keywords: DEUTSCHEBANK/PAY (Reporting by Edward Taylor, +49 69 7565 1187; edward.taylor@thomsonreuters.com; edward.taylor.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Deutsche Bank said the move arose from a review to ensure pay 'remains competitive'.
Fixed pay for 2010 will be calculated using an average based on revenues from the years 2007 -- a very good year for investment banking revenues -- and 2008, a person familiar with the matter said.
Overall compensation for employees is not expected to rise as a result of the change between fixed and variable components, the person said.
Britain has announced a one-off levy which will tax bonuses by 50 percent in the 2009 bonuses round.
U.S. President Barack Obama last week outlined proposals for Wall Street banks to pay up to $117 billion to reimburse taxpayers for a bailout..
France in December announced plans to clamp down on trader bonuses.
News of the change in Deutsche Bank's remuneration policy was first reported in German daily Handelsblatt.
(Editing by Jon Loades-Carter) Keywords: DEUTSCHEBANK/PAY (Reporting by Edward Taylor, +49 69 7565 1187; edward.taylor@thomsonreuters.com; edward.taylor.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.