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Deutsche entices BT chiefs
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March 24, 1999: 5:03 a.m. ET
Top executives at Bankers Trust to split $500M, report says
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LONDON (CNNfn) - Deutsche Bank is poised to shell out up to $500 million for several top bankers to make its $10.1 billion purchase of Bankers Trust pay off, according to a press report Wednesday.
The German financial giant will pay huge retention bonuses to ensure the top talent stays put at the eighth-largest U.S. bank once the takeover is complete, the Wall Street Journal reported Wednesday.
Deutsche Bank has agreed to pay five senior executives at Bankers Trust a total of $187 million in the first few years after the expected completion of the acquisition, due sometime in the second quarter, the Journal reported, citing filings with the U.S. Securities and Exchange Commission.
The newspaper said the German Bank had earmarked a total of between $400 million and $500 million to retain prized talent the bank deems indispensable if it hopes to bring American banking know-how to its European operations.
Bankers trust chairman Frank Newman will reportedly get the biggest prize, receiving an annual salary and bonus of "at least" $ 11 million through the end of 2003. Newman will also receive $14 million to be paid in three installments starting on the deal's first anniversary, the Journal said.
Vice Chairmen Yves DeBalmann and Mayo Shattuck will both receive $15 million retention bonuses, to be paid in gradual disbursements, contingent on their staying at the bank.
Chief Financial officer Richard Daniel will be privy to a $9 million retention bonus, in addition to a regular salary and bonus of $4.5 million over the next few years.
The Journal said the pay packages are considerably higher than those received by Deutsche Bank's own top Frankfurt-based executives.
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