By Aaron Kirchfeld Dec. 12 (Bloomberg) -- Deutsche Bank AG Chief Executive Officer Josef Ackermann said Germany has a “comparative advantage” over other financial hubs because it doesn’t plan to tax bonuses like Britain and France. “To strengthen the financial hub of Germany I think is a very wise move,” Ackermann said in an interview in Berlin late yesterday. Ackermann and German Finance Minister Wolfgang Schaeuble said two days ago that German financial institutions including Deutsche Bank, Commerzbank AG and Allianz SE, agreed to uphold the Group of 20’s so-called self-discipline accord, rather than resort to a new tax. The U.K. government on Dec. 9 announced a one-time 50 percent tax on bonuses of more than 25,000 pounds ($40,800). President Nicolas Sarkozysaid Dec. 11 that France will follow suit. France may tax 2009 bonuses exceeding 27,000 euros ($39,800), two French government officials said Dec. 10. The German guidelines are based on those suggested in September by the Basel, Switzerland-based Financial Stability Board, which discourage bonus guarantees longer than one year, encourage companies to defer bonuses for senior executives and other key employees and enable pay to be clawed back if losses occur at a later date. Britain, France Politicians in Europe are trying to assuage voter anger after governments provided $5.3 trillion of aid to banks during the credit crisis. Britain and France are the first nations since the outbreak of the crisis to target bonuses with a tax. German Chancellor Angela Merkel said on Dec. 11 she won’t seek a bonus tax in part because it might be unconstitutional. Joachim Faber, CEO of Allianz Global Investors, said the crackdown on compensation by France and U.K. contravened the call of the G-20 nations to ensure regulations are imposed in lockstep across borders. “We have to make sure that we act in a coordinated way,” Faber said at a conference in Berlin today. “It seems to me a little disturbing on compensation. It looks like a new field of competition has opened.” Morgan Stanley Asia Chairman Stephen Roach said the “blame game” needs to be shared and not focused on bankers. Regulators, central banks and investors all “need to take some responsibility,” he told Bloomberg Television in Berlin. Taxing the pay of bankers “doesn’t convey a sense of shared responsibility.” To contact the reporters on this story: Aaron Kirchfeld in Berlin atakirchfeld@bloomberg.net
Monday, 14 December 2009
Ackermann Sees German ‘Advantage’ Without Bonus Tax (Update1)
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