Press Release Press Release

search

November 10, 2009

Commerzbank introduces new compensation system

● Sustainable business success to determine variable compensation

● Malus model for employees in capital markets business and for the management of the bank

● Sieber: “We offer competitive incentives schemes, and are attractive to top performers"


In January 2010, Commerzbank is introducing a new compensation model for the first and second management levels, as well as all other non pay-scale employees. At the same time, new rules will apply for Corporates & Markets and Treasury, the businesses most closely involved with the capital markets. The compensation models for the subsidiaries are currently under review. “The variable remuneration will depend on individual performance and on the bank’s sustainable success. Thus, the system offers competitive incentives for top performers”, said Ulrich Sieber, responsible for Human Resources and Integration within the Board of Managing Directors of Commerzbank. “The performance focus in the variable compensation leads to increased payments in good, and reduced payments in bad times“. The review of the compensation model was also part of the agreement with the Special Fund Financial Market Stabilisation (SoFFin).

Under the new compensation scheme, the fixed salary component will be paid out in twelve monthly instalments. Fixed components previously made as special payments will be included. This will harmonise the fixed salary payment systems of Commerzbank and Dresdner Bank. The amount of the fixed salaries, however, will not change. Employees from the first and second management levels, in particular, will receive part of their salaries as Share Awards, to be paid out after three years. The final payment will depend on the medium-term share price development of the bank. If employees have taken undue risks, for instance, entitlements may also be forfeited. The compensation is thus subject to a bonus malus system.

The capital market segments Corporates & Markets and Treasury have a higher variable component percentage than other business segments. Two-thirds of the variable component will comprise deferred payments; half of this will be paid in Share Awards and half will be allocated to a Bonus Bank, which will apply an additional malus system. If goals are not met, some or all of the payments held in the Bonus Bank will be forfeited. “Our model provides incentives to work long-term for the sustainable success of our bank”, said Sieber.


Press contact:
Reiner Roßmann: +49 69 136 46646
Simone Fuchs: +49 69 136 44910
Melanie Loriz: +49 69 136 43246

Contact

Top