Deutsche Bank’s Cryan Laments Bonus Rule as Europe Lenders … – Bloomberg

Need another reason why European banks can’t compete with their U.S. peers? Just ask John Cryan.

The chief executive officer ofDeutsche Bank AG told analysts that a new directive requiring European banks to defer the lion’s share of bonuses for top-paid staff is making it difficult to attract talent. He suggested the rules helped sway management to pursue a partial listing of the bank’s asset management division, because stand-alone investment firms won’t be affected.

It’s a “competitive disadvantage,” Cryan said on a call Thursday, where he presented the Frankfurt-based bank’s third-quarter earnings, including a 30 percent decline in trading revenue, twice as much as the drop at Wall Street peers.

An outspokencritic of bankers’ pay when he took on the top role at Deutsche Bank in 2015, Cryan is changing his tone as Germany’s largest lender scrambles to attract talent after the steepest bonus cuts in its recent history. Revenue has fallen in all but two quarters under the CEO, who has eliminated thousands of jobs, reduced risky trading and settled legacy misconduct cases. With investors pushing for the bank to restore top-line growth, Cryan has said the bank will return to its normal compensation policy this year.

To read more about investor pressure on Cryan, click here.

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