(Jan 10): Deutsche Bank AG has changed the way it judges staff this bonus season, with a greater range of performance ratings and more weight given to non-financial aspects, such as teamwork. 

The German lender now has five ratings for employees, up from three, people familiar with the matter said. While the new criteria won’t affect the overall size of the bonus pool, they could mean changes for individual pay, they said, asking not to be identified discussing the private information.

The decision has created nervousness within the bank, some of the people said. A representative for Deutsche Bank declined to comment. 

The annual decision over bonuses is one of the most significant that Deutsche Bank’s leadership can take to influence staff morale, especially in the investment bank, which often generates the biggest portion of the group’s earnings. Preliminary discussions over variable pay began last month, and a final decision is scheduled for March, the people said. 

Deutsche Bank is expected to post net income of about €4 billion (US$4.1 billion or RM18.6 billion) for 2024, according to analyst estimates compiled by Bloomberg — slightly less than the previous year. Chief financial officer James von Moltke said in November that Deutsche Bank was “very encouraged” with the momentum of its business at that stage of the year.

For 2023, Deutsche Bank cut its overall bonus pool following a weak performance in the investment bank. At the same time, one employee raked in more than €14 million, making them the best-paid person at the German lender in at least a decade.

Deutsche Bank has opened the purse strings followings its lean years, when mounting losses and post-crisis restructuring put the brakes on big awards for staff. Back then, the annual bonus announcement became known as DOLF, or “day of long faces”, for the disappointment it would typically cause workers, Bloomberg previously reported.  

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