Deutsche Bank AG, Germany's largest bank, reduced the pay of itsmanagement board by 19 percent after missing its profit goal lastyear.

The board's seven members received 26.4 million euros ($34.9million) in salary and bonuses for last year, compared with 32.4million euros in 2010, when there were eight members, Deutsche Banksaid today in a statement on its website.

Financial firms worldwide are facing public and politicalpressure to limit bankers' compensation after taxpayers were forcedto bail out the industry during the financial crisis. DeutscheBank, which didn't require direct state aid, announced 500 job cutsat the investment bank in October to reduce costs as tougherregulation weighs on profitability. Morgan Stanley, Credit SuisseGroup AG and Citigroup Inc. have all reduced senior investmentbankers' pay for last year as revenue slows.

Chief Executive Officer Josef Ackermann's pay was almostunchanged at 6.3 million euros, according to the annual report.Anshu Jain, who runs the investment bank and takes over as co- CEOat the end of May, earned 5.81 million euros, down from 7.55million euros. Juergen Fitschen, who heads Germany and will becomeco-CEO with Jain, was paid 2.85 million euros, compared with 2.99million euros. The management board shrank by one member whenMichael Cohrs, the former co-head of the investment bank, retiredon Sept. 30, 2010.

The German bank missed a goal of doubling pretax operatingprofit to 10 billion euros last year from 2009 levels as Europe'sdebt crisis curbed trading. Net income slid 76 percent to 147million euros in the fourth quarter as the investment bank posted a422 million-euro pretax loss.

Deutsche Bank cut pay for employees at the corporate andinvestment bank by 15 percent in 2011, setting aside 5.05 billioneuros for compensation and benefits, compared with 5.91 billioneuros in 2010, according to company filings last month. That wasenough to pay an average of 332,785 euros to the 15,184 employeesat the division, which includes transaction banking, down from378,659 euros a year earlier, the documents show.

Barclays Plc cut CEO Robert Diamond's remuneration by almost athird last year and froze his salary for 2012 after the lendermissed its profitability target. Diamond received 6.3 millionpounds ($10 million) in salary, bonuses and stock last year, makinghim Britain's second-best paid bank CEO after HSBC Holdings Plc'sStuart Gulliver, with 7.16 million pounds.Deutsche Bank shrank itsbonus pool by 17 percent, Ackermann told reporters Feb. 2. Bankerswill receive 37 percent less cash than last year as part of theirbonus, while about 61 percent of the total amount will be deferred,he said.

The bank told employees it will impose a 200,000 euro cap onbonuses paying out this year, three people with knowledge of thediscussions said last month.

Staff will receive as much as 100,000 euros in cash and 100,000euros in stock they won't be able to sell before August, the peoplesaid, declining to be identified because the talks were private.Any further bonus will be deferred over three years, they said. Thelimit will apply to employees across the company, including theinvestment bank, one of the people said.

Volkswagen AG's Martin Winterkorn, who led the world'ssecond-largest carmaker to a record profit last year, earned 17.5million euros to top the rankings as the best-paid CEO amongcompanies on Germany's benchmark DAX Index.

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