'Cash may be King',  but that's not stopping Deutsche Bank CEO John Cryan from exploring alternatives to paying bonuses in cash.  Executives have informally discussed various options - like, issuing some bankers shares in the non-core unit, or replacing the cash component with more Deutsche Bank stock.

Any such measures, if pursued in the coming months, would mostly impact the investment bank.  Any decision will probably depend on the size and timing of Deutsche Bank’s settlement with the U.S. Department of Justice over a probe into the sale of faulty toxic mortgage-backed securities.  For 2015, Deutsche Bank awarded staff €2.4 billion ($2.6Bn) of bonuses, more than half of which was for the combined investment banking and trading unit. Of the €2.4 billion, 49 % was deferred stock and cash while the remainder was paid out immediately.

The bank risks angering staff if it abandons cash incentives entirely, said Alan Johnson, founder of NY-based compensation consultancy Johnson Associates. If the board proceeds, it should at least pay cash bonuses to junior staff and structure something creatively for senior bankers that could dramatically increase in value if the bank recovers.  “They’ve got low morale already. The best thing would be to limit the number of people it applies to and give them some hope.”