Corporate governance heavyweight Hermes has lashed out at what it calls the “high” level of pay at Deutsche Bank.
The Financial Times reports that Hermes said at the bank’s annual general meeting last week that the level of compensation for Deutsche staff below board level is too high compared with the level of dividends paid out to shareholders.
Hans-Christoph Hirt, a Hermes fund manager, said that employee pay as a percentage of overall earnings is 40 per cent, which is too 'high compared to (Deutsche’s) peers'.
The newspaper also reports that Nomura is set to become one of the first global investment banks to move its fixed-income and equities traders on to combined trading floors, in a stark reminder of the pressure to reduce costs in the sector.
Steve Ashley, Nomura’s head of global markets, said the bank’s 1,500 sales and trading staff across its London, New York and Hong Kong offices would move to combined trading floors in the next few months.
Hermes attacks Deutsche pay levels (subscriber content)
Nomura moves traders to combined floor (subscriber content)