Anshu Jain, Deutsche Bank’s top investment banker, earned more than chief executive Josef Ackermann during his first full year on the bank’s management board, the German bank has revealed.
The €12m ($16.8m) paid in salary, bonuses and benefits to Mr Jain for 2010 compares with almost €9m earned by Mr Ackermann and highlights the UK-based banker’s important role at the bank. Mr Jain is one of the favourites to succeed Mr Ackermann, whose contract as chief executive runs until 2013.
The pay packages revealed in Deutsche’s annual report, which include cash and share bonuses that depend on the bank’s performance in years to come, keep both men in the upper echelons of the pay league for global bankers, although Mr Ackermann’s pay fell from €9.55m in 2009. Deutsche said its total pay bill rose 12 per cent to €12.7bn, including €655m paid to a group of 168 senior staff, mostly in its investment banking division headed by Mr Jain.
Two investment bankers received €10.2m in “sign-on” payments to join Deutsche last year, according to the bank’s annual pay report.
Mr Ackermann has firmly defended Deutsche’s right to pay market rates to staff, although the bank has amended its pay schemes since the financial crisis to try to attach more bonuses to long-term performance.
Top trading staff often earn more than chief executives in the banking industry – as was the case last year at Barclays – and Mr Jain’s pay is widely assumed to have been higher several years ago.
His pay and bonuses have been disclosed by the bank only since he joined its management board in April 2009. Mr Jain’s importance to Deutsche was cemented in 2010 when he took sole charge of the bank’s corporate and investment banking division, its main moneymaking unit. The division earned pre-tax profits of €6bn in 2010, up 39 per cent over 2009, while its revenues of almost €21bn were the highest and up 11 per cent compared with last year.
Mr Jain earned €7.8m for the nine months he was a board member in 2009.
Mr Ackermann’s pay of €9m for 2010 included a rise of more than 40 per cent in his base salary to €1.65m, but his bonuses fell from €8.2m to €7.2m. The bonuses include €5m of deferred cash and share payments that will be paid out in four instalments from 2012, depending on the bank’s performance.