(Bloomberg) -- Deutsche Bank AG, UBS Group AG and Societe Generale SA are planning to reduce the overall amount of variable compensation they will pay out for 2023 after a tough year for Europe’s investment banks.
Staff in some units that performed well may still receive higher bonuses, people familiar with the matter said, without saying how big the cuts will be. But the overall pot will drop, the people said, asking not to be identified discussing private information noting that the decision process is ongoing.
Representatives for the lenders declined to comment.
Variable pay “will reflect performance in 2023,” Deutsche Bank Chief Financial Officer James von Moltke said on Tuesday. “And as you have seen in a number of different areas of the investment banking business in particular in 2023, it has been a difficult market.”
Revenue at Deutsche Bank’s investment bank declined 12% during the first nine months of last year. At Societe Generale, the fall was 2.5% and for UBS it was 7.3%. Payouts to the Swiss lender’s wealth managers in Europe and Asia are also expected to drop, other people familiar with the matter said.