entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 130
Financial Report 2010 Compensation Report
The amount of the Division Incentive is determined by considering the individual contribution of the Management
Board member with such entitlement as well as the performance of the CIB Group Division (e.g., on the basis
of net income before taxes), also in relation to peers and set targets, as well as risk aspects (e.g., the development
of risk-weighted assets or Value-at-Risk).
Long-Term Incentive
At least 60 % of the variable compensation (bonus, LTPA and if applicable the Division Incentive) is granted as
deferred compensation, so that its delivery is spread out over a longer vesting period and it is subject to forfeiture
until vesting. A minimum of 50 % of deferred compensation is granted as equity-based compensation (Restricted
Equity Awards). The final value of the Restricted Equity Awards depends on the value of the Deutsche Bank
share upon their delivery. The part of the deferred compensation that is not equity-based is granted as deferred
cash-based compensation (Restricted Incentive Awards).
Both the Restricted Equity Awards and the Restricted Incentive Awards vest in four equal tranches, starting
approximately one and a half years after grant and then in intervals of one year, in each case, so that their
vesting stretches over a total period of approximately four and a half years. All deferred compensation components
(Restricted Equity Awards and Restricted Incentive Awards) have a long-term incentive effect as they are subject
to certain forfeiture conditions until they vest. Awards may be forfeited based on a negative Group result, but
also due to individual misconduct (e.g., upon a breach of regulations) or individual negative contributions to
results. Members of the Management Board are not permitted to limit or cancel out the risk in connection with
the deferred compensation components through hedging transactions or other countermeasures.
Holding Periods (Retention Periods)
Once the individual tranches of the Restricted Equity Awards vest, they are subsequently subject to an additional
holding period; only after this holding period has expired may the equities of the respective tranche be disposed
of. The holding period of the first tranche of the Restricted Equity Awards, which vest after approximately one
and a half years, is three years; the holding period of the second tranche of the awards, which vest after approximately
two and a half years, is two years; and the holding period of the third and fourth tranches, which
vest after approximately three and a half and four and a half years, is one year in each case. Accordingly,
Management Board members are first permitted to dispose of the first three tranches of the Restricted Equity
Awards approximately four and half years after they are granted, and of the fourth tranche only after approximately
five and a half years. Not only until they vest, but also during the holding period, the Restricted Equity
Awards are subject to the performance of the Deutsche Bank share and thus depend on a sustained development
of long-term value.