SHAKEUP: New co-CEOs Juergen Fitschen and Anshu Jain said their 100-day review of Deutsche Bank concludes it must cut costs, shed risky investments and tighten executive pay practices as part of an effort to strengthen itself against a slackening global economy and more regulation.
GLOBAL CHANGES: The measures are aimed at helping Germany’s largest bank face uncertain economic growth and governments that are demanding that banks hold more reserves against losses. Deutsche Bank’s earnings fell 46 percent in the second quarter, and it has announced 1,900 job cuts.
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BONUS REFORM: Jain said the bank wants to lead the industry in reforming compensation practices, a chief target for critics. Large bonuses have been blamed for spurring risky behavior. The new measures will involve top executives’ bonuses being deferred for five years. The idea is to reduce the incentive for decisions that pay off in the short term but carry longer-term risks.
