Deutsche Bank CEO: German banks will self-regulate on pay

11 December 2009

Deutsche Bank chief executive officer Josef Ackermann has declared that banks in Germany will act with "self-discipline" on pay rather than be regulated by the country's government.

In a meeting of Germany's largest financial institutions, including Allianz SE and Commerzbank AG, executives agreed to uphold the G20 proposals on remuneration.

"We said it would be best to officially take the initiative to coordinate on self-discipline," said Mr Ackermann, in a press briefing that was also attended by Germany's finance minister Wolfgang Schaeuble.

The country's government has dismissed the idea of following in the footsteps of the UK, where chancellor Alistair Darling introduced a 50 per cent levy on bankers' bonuses this week.

Mr Schaeuble backed Deutsche Bank's plan, telling reporters that compensation structures were needed in order to keep the country's banking sector sustainable in the global marketplace.

Alistair Darling has come under fire from bankers in Britain over his plans.

Anglea Knight, chief executive of the British Bankers' Association, said she thought it would make London a less attractive place to do business for international firms.

By Asim Shah

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