Deutsche Bank Criticized for Paying €52 Mln Compensations to Fired Execs Amid Massive Layoffs
Deutsche Bank has been slammed for reportedly paying its senior managers “golden parachutes” as over 18,000 jobs were cut, FT reports Wednesday, July 10.
On July 7, when Deutsche Bank announced its massive layoffs, a photo of the two men leaving the bank’s building with large bags went viral. They were first believed to be fired employees, however, later it became clear that the men were Fielding & Nicholson's tailors who fitted suits for the bank’s execs.
According to the FT, this service might be worth over $1,800. The newspaper also added that some of the top managers who were subject to staff cuts were paid as much as €52 million in "golden parachute" packages.
As per FT, the severance payment was made to the former CEO John Cryan who got €11 million pay off. Moreover, six more board members received other €41 million.
Deutsche Bank has announced its staff cuts earlier this week amid the plan that aims to cut the company’s total costs by 25% by 2022. A total of 18,000 will be laid off by that year.
As the bank revealed its decision, its shares lost up to 6% on that day. At press time, the shares price was hovering around €6.6.