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European banks’ bonuses: all down, Deutsche down the most

1 November 2007

eFinancialCareers UK

Average bonuses at Deutsche Bank look set to fall 22%; bonuses at UBS are liable to decline 10%; and those at Credit Suisse should slip 3.4%.

Results from the three European banks that revealed their 3Q performance this week show all are set to reduce average bonus payouts for investment bankers this year compared to last.

Compensation and benefits expenditure for their investment banking divisions for the year to date, averaged over the number of investment banking employees and rounded up for the full four quarters, also shows Deutsche as by far the best payer of the three.

Assuming the fourth quarter doesn't go completely awry, the German bank is on track to pay its average i-banker €404,310 in 2007. Credit Suisse should pay €317,600. And UBS should pay a comparatively paltry €272k.

Banks’ results also reveal disparities in their appetite for adding staff. Deutsche Bank has increased its investment banking headcount by a massive 24% in 2007; Credit Suisse has increased headcount 9%; and UBS has upped staff by a teeny weeny 2.4%.

Comments (14)

It'll be interesting to see what the banks in trouble do. They wouldn't want to lose their best people to the Goldmans and hedge funds who are doing well out there, but at the same time they don't want to pay ludicrous bonuses when they're suffering huge losses.

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Comments (14)

  • I don't understand how you can take press releases on the revenues from these banks, do a sloppy calculation and then make wild assumptions about what bonuses they will pay?

    If you have any further information to back up these wild claims then you should cite your sources.  If you can't then this is probably just biased opinion rather than fact and so shouldn't be posted.

    anon 01 Nov 2007

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  • Do you make this stuff up or what? Honestly....

    Bob Banker 01 Nov 2007

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  • I agree ...don't look to much into these figures and just wait and see. There are alot of wild speculation around at the moment and would take this one aswell with a 'pinch of salt'

    jonny D 01 Nov 2007

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  • This is the time of year when I am often at my busiest, I can usually con a few people into parting with hard earned cash for a glass ball. Now despite the obvious fact that there is going to be less of it around this year (cash not balls- although could be fewer of those as well- remember the formula take redundancy number and multiply by 2( roughly)).

    Now where was I, ah, yes- glass balls. Always a dangerous game . My advice is keep your money in your pocket, close that very last deal for the year, sit back, enjoy the festive season  and wait for what the almighty (aka the boss) has ordained

    Crystal ball salesman 01 Nov 2007

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  • What are you talking about? How did you reach these figures?

    anon 01 Nov 2007

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  • As stated in the article, the figures come from banks' own 3Q results. They are derived from averaging compensation and benefits expenditure for the first nine months of the year by the number of people employed at the end of 3Q. Evidently this is not an indication that a particular person's bonus will be down. It is, however, a suggestion that the average bonus will fall.

    It is not a wild claim, the calculations are as sloppy - or not - as banks' own figures, and the sources are given...

    Sarah, Editor, eFinancialCareers 01 Nov 2007

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  • "They are derived from averaging compensation and benefits expenditure for the first nine months of the year by the number of people employed at the end of 3Q."

    That sounds a bit like a sloppy calculation to me!

    me 02 Nov 2007

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  • Sarah, in fairness, it's silly to argue that your numbers are anything more than the result of a pointless - if not sloppy - calculation. A bank obviously assigns its bonsues to those employees it wants to retain so your average payout calculation is at best speculative and at worst poor journalism. It's ok, Sarah. You just got a little too ambitious. Next time, just stick with reporting the actual news and don't try to apply your dodgy maths skills.

    him 02 Nov 2007

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  • Sarah - since you admit that the percentages are a ludicrously broad average, what is the point of the story?
    All you are saying is that 3rd Quarter results are down and then inferring a bonus impact for this. What's next - EFinancial exclusively reveals that the Pope has been attending mass whilst bears have active digestory tracts at home?

    Bob Banker 02 Nov 2007

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  • It'll be interesting to see what the banks in trouble do. They wouldn't want to lose their best people to the Goldmans and hedge funds who are doing well out there, but at the same time they don't want to pay ludicrous bonuses when they're suffering huge losses. However they play it, it will not be an equilibrium outcome.

    Al 05 Nov 2007

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