Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Investor Day (September 2012)
18 slides from Deutsche Bank's investor day presentation, Sep 12, 2012
Slide 1: Culture and Compensation
Deutsche Bank Culture and Compensation Stephan Leithner, CEO Europe (ex Germany and UK), HR, Legal & Compliance, Government & Regulatory Affairs Investor Day, Frankfurt, 12 September 2012
Slide 2: A commitment to evolving our culture
A commitment to evolving our culture Building on cultural Additional attributes Lack of trust in the banking industry strengths we will emphasize Percentage of survey respondents who place trust in given industry, 2012(1) Long-term Performance culture orientation and sustainability Entrepreneurial s
Slide 3: We have already addressed many compensation issues
We have already addressed many compensation issues Variable comp(1) as % of net revenues has declined Compensation practices have improved 22% Stricter governance 20% 19% 17% Early adoption of regulatory requirements 15% 11% Better alignment to long-term performance Strong behavioral focus Increased
Slide 4: We go over and above regulatory requirements on compensation
We go over and above regulatory requirements on compensation We are recognized as a proactive firm committed to aligning our compensation Scrutiny of compensation in banking industry strategy with evolving remuneration regulations Indicative US analysis: Bonus (1) as percentage of median — Independe
Slide 5: Deferrals and clawbacks are already an important feature of our compensation structure
Deferrals and clawbacks are already an important feature of our compensation structure ...and subject to performance and clawback Majority of bonus for senior provisions(3) that have been used and applied employees is deferred… appropriately Composition of 2011 bonus Upfront 10% Cash 10% — Negative
Slide 6: Senior management committed to take the lead on aligning compensation structure
Senior management committed to take the lead on aligning compensation structure to long-term sustainability — MB compensation already includes KPIs such as RoE and Management Board relative Total Shareholder Return (3), as approved at the AGM MB(1) — Subject to further Supervisory Board review — Ext
Slide 7: An independent external panel will conduct a review of our compensation structure and governance
An independent external panel will conduct a review of our compensation structure and governance in 4Q2012 Panel composition… ...and objectives — Independent external panel of senior and — Benchmark our compensation systems highly credible professionals from outside the against industry best practic
Slide 8: We will further enhance transparency on compensation ...
We will further enhance transparency on compensation ... Enhancements planned for DB compensation transparency already aligned to peer group FY2012 reporting European peer banks US peer banks Based on FY2011 reporting P1 P2 P3 P4 P5 DB P6 P7 P8 P9 P10 DB 2012 Exec. / Board remuneration
Slide 9: ... starting with deferral levels and outstanding amortization
... starting with deferral levels and outstanding amortization Deferred compensation costs – remaining Variable comp(1) and deferral rate amortization schedule of existing awards(2) In EUR bn Deferral rate In EUR bn 4.8 Cash 2.4 1.0 Deferred 4.3 3.6 2.7 2.2 1.4 0.9 43% 61% 49% 2.1 2.1 2.2 0.3 0.1 20
Slide 10: Culture goes beyond compensation
Culture goes beyond compensation Leadership Compensation actions Behaviors and Talent beliefs management Stakeholder Organizational interaction Culture structure Processes and Diversity systems Performance Business management practices Deutsche Bank Stephan Leithner financial transparency. 9 Investo
Slide 11: Our culture evolved as we grew over the last few decades
Our culture evolved as we grew over the last few decades 1989 – 2000 2001 – 2007 2008 – Today Organizational change — The creation of the — Recalibration and — Rapid global growth modern Deutsche Bank positioning for the future — Development of market — Global player with — Commitment to leadership
Slide 12: Building on our strengths but with a vital new emphasis on a few additional key attributes
Building on our strengths but with a vital new emphasis on a few additional key attributes Additional attributes we will We are proud of the culture we have built emphasise — Meritocracy — Execution and results Performance oriented Long-term orientation and sustainability culture — Crisis mobilizati
Slide 13: Bank-wide risk culture initiative shows our commitment and ability to drive targeted change
Bank-wide risk culture initiative shows our commitment and ability to drive targeted change Risk culture systematically embedded in Risk culture behaviors articulated processes — Be fully responsible for Deutsche Bank’s — Red flag reporting at individual level, using risks objective measurement of e
Slide 14: Similarly we also strengthened our compliance framework
Similarly we also strengthened our compliance framework Implemented Group-wide risk culture Increased compliance and risk culture initiatives education(1) # of compliance and risk modules completed — Revised Code of Conduct and Business Ethics in 2011, and incorporated risk culture 416,000 language
Slide 15: We have started to further align performance standards to cultural values
We have started to further align performance standards to cultural values Changed performance management framework Examples of strengthened standards — Performance defined as what gets delivered Long-term orientation and sustainability and how — Broaden risk culture metrics (‘red flags’) — Objective
Slide 16: Senior management will lead a broad and participative cultural change
Senior management will lead a broad and participative cultural change Top down — Co-CEO and GEC leadership leadership — Senior management ownership Actively — Employees seeking broad engagement — Key external stakeholders Recognizing — Group level and Divisional culture work multi-year character — C
Slide 17: Key take-aways
Key take-aways Be at the forefront of change Address compensation immediately and work on culture over the longer term Enhance transparency and disclosure Better link reward to sustainable performance Further align shareholder and employee interests Ensure proper behaviors and set the tone from the
Slide 18: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and pro