FRANKFURT (Reuters) – Deutsche Bank’s <DBKGn.DE> top managers will waive one month of fixed pay in an effort to cut costs as Germany’s largest lender deals with the fall-out of the coronavirus crisis.
Members of the management board as well as the bank’s group management committee will be affected by the move, chief executive Christian Sewing will tell shareholders at next week’s annual general meeting, according to a text of the speech published on Tuesday.
The bank, which is undergoing an overhaul after five years of losses, is considering other potential cost savings drawn from its experience from the COVID-19 crisis. They include less office space as people increasingly work from home, and less travel with more video conferencing, Sewing said.
“In this phase of upheaval we have to make our bank even more weatherproof – or, to be more precise, stormproof,” Sewing said. “No one knows exactly what the second- and third-round effects of this pandemic will be.”
Deutsche Bank’s overhaul, announced last year, includes shedding 18,000 jobs. The bank had temporarily put a halt to job reductions, but Sewing said it would resume the effort as planned.
(Reporting by Tom Sims, Hans Seidenstuecker and Patricia Uhlig; Editing by Sandra Maler/Mark Heinrich)