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- Deutsche Bank is being slammed for paying out millions to departing senior managers.
- A picture of two men thought to be fired Deutsche bankers went viral on Twitter, after they were photographed leaving the bank bags in hand.
- It turns out they were fitting $1,800 suits for the German bank’s directors, all while hundreds of staff were being fired.
- Deutsche earlier this week announced a massive overhaul which would over the next few years cut 18,000 jobs.
- Read more stories on Markets Insider.
Deutsche’s overhaul just seems to keep getting messier.
On the morning of the announcement that 18,000 jobs were being cut, the bank’s managing directors were having suits fitted worth over $1,800. Adding to the sting, the Financial Times reported on Wednesday that some executives were paid £52 million in "golden parachute" severance packages.
The Financial Times reported that the bank has spent more than €52 million on payouts to departing senior staff since May 2018. The FT said that is almost equal to the whole management board.
Gerhard Schick, head of lobby group Finance Watch Germany called the payments "inappropriate."
"Golden parachutes for failed managers while thousands of employees are losing their jobs just do not match," Schick told the Financial Times.
Suited while employees get booted
It’s a "Let them eat cake" moment for the bank, which was seen as being tone deaf to the gloom of junior staff when on Tuesday Financial News reported that a viral photo of what many thought were fired employees actually were tailors fitting out lavish suits for executives.
The photo went viral on Twitter, and was used by The Financial Times, Guardian and Reuters as well as Business Insider.
Ian Fielding-Calcutt and Alex Riley, who work for Fielding & Nicholson Tailoring, had been fitting suits for senior directors unaffected by the cuts.
Fielding and Nicholson/ Twitter
Fielding and Nicholson/ Twitter
Fielding-Calcutt told Financial News: "Our timing was not great," and that he had been fitting suits for managing directors at the bank for more than a decade.
He added: "Almost 30% of our business comes from investment bankers. I think a lot of the people getting laid off were traders of some sort, who don’t wear suits, and so we just went ahead as normal with our clients who obviously weren’t affected by the cuts."
The German bank’s turbulent 14 months culminated in 18,000 jobs being cut across its offices from Sydney to New York.
Deutsche Bank’s severance payments started with John Cryan, the former CEO getting nearly a €11 million pay off. After that six more board members left, cashing in on at least €41 million according to the Financial Times.
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Source: Business Insider – feedback@businessinsider.com (Yusuf Khan)