entire - Deutsche Bank Annual Report 2012

Deutsche Bank 02 – Consolidated Financial Statements 296
Financial Report 2010 Additional Notes
33 – Employee Benefits
33 –
Employee Benefits
Deferred Compensation
The Group granted cash awards to selected employees with deferred settlement. Each award consists of three
tranches each amounting to one third of the grant volume. The three tranches vest one, two and three years,
respectively, after grant date. As soon as a tranche vests it is paid out, net of those parts of the awards forfeited
before vesting. Generally each tranche is expensed over its vesting period. As a rule, the awards are only paid
out to the employee if there is a non-terminated employment relationship between the employee and Deutsche
Bank at the respective vesting date. The awards are subject to additional forfeiture rules, for example if
employees are in breach of internal policies or law.
From 2010 onwards the awards granted to selected employees at the senior management level are also
subject to performance-indexed forfeiture rules based on regulatory rules requiring that parts of the awards will
not be paid out if defined performance metrics are not met.
The volume of awards granted in February 2010 under the terms and conditions of the DB Restricted Incentive
Plan was approximately € 0.5 billion. In February 2009 awards of approximately € 1.0 billion were granted
under the terms and conditions of the DB Restricted Cash Plan.
From 2011 onwards certain forfeiture rules are only applicable to senior management and employees who are
specifically identified under the regulatory requirements of the new German Compensation Regulation for
Institutions (“InstitutsVergV”).
In February 2011, new awards totaling approximately € 1.0 billion were granted under the terms and conditions
of the DB Restricted Incentive Plan.
In addition, the Group granted share awards which are described in Note 32 “Share-Based Compensation Plans”.