Raises for bank execs go on despite financial crisis

10th March 2009, Comments 0 comments

Postbank’s directors received a total of 16.2 million euros owing to an exceptional bonus of 11.9 million decided in May.

Frankfurt -- Directors of the German Postbank were paid an average of 54 percent more last year while the bank posted a heavy net loss, figures contained in its annual report showed on Monday.

The bank's 10 board members received a total of 16.2 million euros (20.5 million dollars) owing to an exceptional bonus of 11.9 million decided in May.

The bonus was meant to retain directors as Deutsche Bank, the biggest German bank, bought a 30 percent stake in Postbank, which has Germany's biggest retail banking network.

In 2007, the Postbank board received total pay of 10.5 million euros.

Postbank boss Wolfgang Klein was the highest paid executive last year, with more than 3.3 million euros, of which 2.4 million came from the bonus.

Board members did not receive an annual bonus linked to performance however, as Postbank posted a net loss of 821 million euros.

Bosses salaries are a recurrent theme of debate in Germany, and Klein had said last month that "we must put an end to this witch hunt."

In October, Deutsche Bank chief Josef Ackermann decided to forego his annual bonus owing to effects of the financial crisis.

The board of number two Commerzbank did likewise in November after it asked for state aid.

AFP/Expatica

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