Deutsche Bank has reduced the cash bonuses of management board members connected to last year’s bungled Postbank IT integration project.
Bonuses were slashed by €1.95 million over what the bank calls, in its annual report, the “unacceptable” migration problems.
The Postbank migration last summer saw 12 million customers and 50 billion data sets shifted to different IT systems.
In July, the bank said that the operation had been a success but weeks later customers were experiencing problems accessing their accounts, prompting a reprimand by German watchdog Bafin.
BaFin chief Mark Branson called the disruptions “unacceptable and extraordinary”, pointing out the bank’s inadequacy. He continued: “I would even say it’s an unprecedented situation when we look at how many complaints there are about a single institution.”
In its annual report, the bank says “the large number of customers who experienced limitations as a result of the migration is unacceptable. In executing this integration program, the Bank failed to meet its own high standards and the expectations of customers.”
As a result, the supervisory board has cut some senior executives’ variable compensation.
Karl von Rohr, who recently left his role as private bank head after his contract was not extended, took the brunt of the losses, with his cash bonus halved to €974,000. CEO Christian Sewing saw his cash bonus reduced by €281,000.
