Human Resources Report 2015 - d b

1 Human Resources Report 2015 About Deutsche BankLetter from Karl von Rohr and Pippa Lambert 04 Strategy 2020 targets 05 Corporate profile 061 The strategic HR agendaDelivering sustainable organizational performance 08 Creating a stronger bank rooted in a strong culture 10 Diversity is critical to long-term success 132 Developing, attracting and rewarding employeesDeveloping employees and creating future leaders 19A balanced approach to talent acquisition 22 Aligning the reward system to evolving requirements 253 Managing changeClose collaboration with the Bank s social partners 30A long-term perspective to managing change 314 Supplementary informationDeutsche Bank Group s key staff figures 33 About the Report 37 Imprint 38 ContentAbout Deutsche BankLetter from Karl von Rohr and Pippa Lambert 04 Strategy 2020 targets 05 Corporate profile 06 Ladies and Gentlemen,Under Strategy 2020, announced in April 2015 and detailed in October, Deutsche Bank is simpli-fying its business model and global footprint, realigning its business divisions, reducingcomplexity, investing in technology and cutting success of Strategy 2020 will depend in part on our ability to retain, motivate, develop.

2 Andcontinue to attract employees with the skills and experience to help the Bank master challengesand make the most of opportunities. Investing in our employees remains of paramount Human Resources Report provides transparency on the Bank s employee metrics and howwe are translating our strategic priorities into action. It gives examples of what we achieved in2015 in organizational culture; diversity and inclusion; talent and development; talent acquisition;compensation and benefits; managing change; and collaboration with our social a control function of Deutsche Bank, the role of HR has changed in recent years. More thanever, it operates in partnership with senior management and all business divisions and infra-structure functions. Key to this role has been its continued focus on bringing the Bank s valuesand beliefs to life through a long-term vision for the HR function, and specific commitmentsunderpinning that are sincerely grateful to all employees and their representatives for their close andconstructive cooperation in 2015 .

3 We were able to achieve good progress against many strategicpriorities despite our challenges. Continuing that partnership will be key to implementing thesignificant changes announced under Strategy year marked by changes across the organization lies ahead for Deutsche Bank in the Bank and its employees to achieve sustainable organizational performance remainsour overarching ,Karl von RohrMember of the Management BoardPippa LambertGlobal Head of Human ResourcesFrankfurt am Main, March 2016 Deutsche BankHR Report 201504 Strategy 2020 targets I see four principal goals. First, we want to make Deutsche Bank simpler and more efficient. By focusing on where we can truly excel, we ll be a better bank. That includes reducing the number of prod-ucts and services we offer, deepening our relationships with the most promising clients, and bringing focus to the number of locations in which we operate. Second, we want to lower the bank s risk profile.

4 This means turning down marginal business about which we may have doubts and which could eventually result in us facing a fine or a legal settlement. Third, we want to be better capitalized so that we are no longer playing catch-up with regulation and market expectations. Finally, we want to be a better run bank. Message from John Cryan on Strategy 2020 to all employees on October 29, 2015 Group financial targets20182020 Simpler & more efficientCET 1 ratio %Leverage ratio % %Less riskyPost-tax RoTE>10 %Dividend per shareAspiration to deliver competitive payout ratioBetter capitalizedCosts (1), in EUR bn< ~70 %~ 65 %Disciplined executionRWA (2), in EUR bn~ 320~ 310 Note: 2018/2020 targets are based on assumed FX rates of / US$ and / (1) Total noninterest expenses excluding restructuring and severance, litigation, impairment of goodwill and intangibles and policyholder benefits and claims(2) Excluding expected regulatory inflationDeutsche BankHR Report 201505 Corporate profile We aim to deliver financial solutions, technology , products and services that exceed our clients expectations.

5 We want to be the most respected financial services provider across all customer segments in Germany, our vital and strong home market; the number one bank for our corporate, institutional and fiduciary clients in Europe; and the best foreign bank in the United States and Asia. A message from John Cryan to Deutsche Bank employees, February 9, 2016We have reorganized our operating divisions along our client lines to strengthen client alignment and anticipate developing regulatory best divisions until December 31, 2015 Operating divisionsCorporate divisions effective January 1, 2016 Corporate Banking & SecuritiesSales & Trading Debt Sales & Trading EquityGlobal MarketsCorporate FinanceCorporate & Investment BankingGlobal Transaction BankingGlobal Transaction BankingPrivate & Business ClientsPrivate & Business ClientsPrivate, Wealth & Commercial ClientsDeutsche Asset & Wealth ManagementPrivate Wealth ManagementAsset ManagementDeutsche Asset ManagementDeutsche BankHR Report 201506 The strategic HR agendaDelivering sustainable organizational performance 08 Creating a stronger bank rooted in a strong culture 10 Diversity is critical to long-term success 131 Delivering sustainable organizational , ,threelonger-termstrategicprioritieshave been identified for HR:to apply its Human capital expertise more assertively to support the business divisions and infrastructurefunctions in order to deliver results;to strengthen its role as a control function for the Bank for Human capital risks.

6 To build the capabilities of managers and ,ourHRactivitieswereinlinewiththeseprior ities,whichhavecomeintoparticularfocuswi thDeutscheBank s Strategy 2020 and its execution over the coming Human capital expertise in partnership with the the , ,withtheBanksupportinginternal, ,internal mobility allows employees to have more diverse and fulfilling ,DeutscheBankseekstoaddtotheskillsofitsw orkforce partoftheBank sinvestmentindigital-izationunderStrateg y2020 andtopositionitselfasanemployerofchoice: onethatrewardssustainableperfor-mance and offers a comprehensive range of page 26 Owning and managing Human capital riskAsanimportantpillaroftheBank sThreeLinesofDefense(3 LoD)programandapproach,theHRfunctionmade progressin2015indefiningandmanagingcontr ols,creatingacommonunderstandingofitsown rolerelatedtocontrols, :chapterRiskandCapitalFramework(AnnualRe port2015)Thisimportantwork,whichimpactsa llactivitiesfromtalentacquisitionanddeve lopmenttodisciplinaryprocesses,willconti nue in page 22and page 10 Settingthestandardsfordisciplinedmanagem entofhumancapitalriskalsoentailsdevelopi ngincentiveandrewardstructuresthatreinfo rceDeutscheBank ,behaviorinlinewiththecorporatevalues,an dcompensationhavealreadybeenlinkedmorecl oselythanbefore,withtheBankintroducingan ewframeworkinearly2016thatprovidesclearg uidelinesonthetargetproportion of fixed to variable compensation by corporate title and by division or page 25 Deutsche BankHR Report 20151-The strategic HR agendaDelivering sustainable organizational performance08 Building the capabilities of managers and staffInvestmentinskillsandacceleratingem ployees professionalandpersonaldevelopmentareess entialcomponentsoftheBank ,whichincludesarecalibratedofferingthath elpstodevelopandnurturefutureleaderswho are accountable.

7 Who champion the Bank s values and who inspire the best in their page ,education, ,inlinewithvoluntarytargetstoraisethepro portionoffemalemanagersacrosstheorganiza tionandinimplementingGermangenderquotale gislation,DeutscheBankhasmadeprogressind evelopingfemaleseniorexecutivesthroughbo thstandard and specialized programs, internal career mobility measures and succession page ,thistranslatesintoastrongerfocusonchang emanagementandadvisingtheBank sdivisions,helpingtoreducecomplexity, ,DeutscheBankworkscloselywithits social partners in preparing and implementing individual strategic page 30HR ,developandcontinuetoattractpeoplewithth erequisiteskillstohelpshapeabetterDeutsc heBankandfosteremployees engagement and motivation throughout the implementation BankHR Report 20151-The strategic HR agendaDelivering sustainable organizational performance09 Creating a stronger bank rooted in a strong cultureAstrongcorporatecultureremainsess entialforDeutscheBank , ,theBankhasfocusedonactivelyengagingempl oyees,anchoredthevaluesandbeliefsinallpe opleprocesses,andembeddedthevaluesinbusi nessprocesses, increased focus on robust controls and greater personal culture in business processes, practices and policiesSincetheannouncementofStrategy20 20inApril2015,theBankhasmovedswiftlyinto implementation, ,simplifiedproduct offering and disciplined client information.

8 Chapter Strategy 2020 (Annual Report 2015 )Specifically,theBankhasdecidedtoexi ttencountriesandcertainproductcategories andtoceaseofferingcertainproductstocerta inclientsegments, (KYC) ,sustainableperformance, the values and beliefs in all people processesHRhasconcentratedonanchoringthe valuesandbeliefsinallpeopleprocesses fromrecruitmenttoperformancemanagement,t alentdevelopment, ,recruitmentandreferralprocessesandpolic ieswerestrengthenedtoensurenewemployeesf ulfilltheBank ,forthesecondconsecutiveyear,theannualpe rformancemanagementcyclefocusedasmuch on how employees go about their work as on the results they ,itisnowstandardformanagers to assess how candidates demonstrate the values and beliefs in their daily compliance, investigate misconduct and take disciplinary action as ,employeeswhoseworkisdeemedtohaveamajori nfluenceonDeutscheBank soverallriskprofileinaccordancewiththeEu ropeanUnion sCapitalRequirementsDirectiveIV, ,theBank scontrolfunctionshavebeenaskedtoprovider obustinput(positiveornegative)onallMater ialRiskTakers.

9 CompensationReport 2015 Deutsche BankHR Report 20151-The strategic HR agendaCreating a stronger bank rooted in a strong culture10 Engaging with employeesIn2015, (InstitutderdeutschenWirtschaftK ln), ,DeutscheBankalsorolledoutanewmandatoryt rainingcourseforallemployeesonitsCodeofC onduct and Business CultureAmbassadors network,launchedin2014, smissionistoconnectandengageemployeesfro malldivisions, ,15cross-divisionalteamswerehonoredin201 5aspartofthe LivingtheValuesAwards ,whichrecognizeemployeeswhostandoutforac hievingbusinesssuccessthroughchampioning thevaluesanddemon-strating exemplary Bank People Survey 2015 InJune, ,000employees,or63%ofthetotalworkforce(a llpermanentemployees,includingPostbankco lleagueswhoarepartofPBCB ankingServices),participated , with values andbeliefs87%high personal motivationtogotheextramileSincethePeople Surveywasupdatedin2014tocaptureaspectsof theBank sculturalchangeprocess,resultshaveshownp rogressinbothfamiliarityandengagementwit hthevaluesandbeliefs:employees awarenessroseto93%(2014.)

10 85%),whileengagementwasat61%, ,althoughemployeeswitnessedanincreaseinb ehavioralchanges,theysaidtheyrequiremore tangibleevidencethatlivingthevalueshasap ositiveimpactonachievingDeutscheBank ,thefocuswillshiftfrombuildingawarenesst oputtingthevaluesandbeliefsintopracticea ndcreatingclearerlinksbetweenculture, conduct and achieving business BankHR Report 20151-The strategic HR agendaCreating a stronger bank rooted in a strong culture11 People Survey 20150 50 100In % Commitment index Enablement index1172 %12n / aIn 2015 , all permanent employees were invited to participate in the People Survey, including Postbank employees who are part of the PBC Banking Services division. All other Postbank employees did not participate. 2014 data has been recalculated to reflect the 2015 population in scope. Survey not conducted in 2013. 73 %1464 %68 %1569 %62 %68 %Thecommitmentleveldeclinedto62% , , ,theyalso identified some barriers to effectiveness, such as some inefficient processes, which need to be results of the 2015 People Survey were communicated starting in August, with a focus on three action points:communicate and create a more open and transparent environment;give greater accountability to employees and hold each other responsible for contributions and decisions.