Sharing the burden
December 18, 2009
Deutsche Bank, Germany's largest bank, says its global staff will share the burden of Britain's recent tax on bankers bonuses. Bank chairman Josef Ackermann told the Financial Times that it would be unfair to treat its UK bankers differently. “If parts (of the cost of the tax) are paid out of the bonus pool, we would seek to globalize it,” he said.
Ackermann also criticized the tax, saying that bonuses should depend on supply and demand for skilled workers. His comments were the first reaction from a bank to the tax, which charges a one-off 50 percent tax on bankers bonuses above 25,000 pounds, or 28,000 euros.
British finance minister Alistair Darling said revenue from the tax would be spent on helping the unemployed get back to work. However, critics say the tax would push bankers to work elsewhere, reducing London's reputation as a financial center.
According to Ackermann, Deutsche Bank will be keeping an eye on how other banks respond to the tax. “We will monitor what banks are doing, how much of the cost will be borne by staff and how much will be taken by shareholders,” he said.
mk/Reuters/AFP
Editor:Neil King