Can't pay, they won't play.
Need another reason why European banks can’t compete with their U.S. peers? Just ask John Cryan.
Bloomberg News reports that the CEO of Deutsche Bank told analysts that a new directive requiring European banks to defer the lion’s share of bonuses for top-paid staff is making it difficult to attract talent. He suggested the rules helped sway management to pursue a partial listing of the bank’s asset management division, because stand-alone investment firms won’t be affected.
It’s a “competitive disadvantage,” Cryan said on a call Thursday, where he presented the Frankfurt-based bank’s third-quarter earnings, including a 30% decline in trading revenue, twice as much as the drop at Wall Street peers.
The new directive, which took effect in Germany in August and is being implemented across the European Union, requires banks domiciled in the bloc to defer bonuses for employees worldwide.
Hit the link below to access the complete Bloomberg News article: