[Photo: DB's Former NYC Headquarters on Fire - by Rob Vincent]

Deutsche Bank cut its bonus pool for 2016 by almost 80% in a move that will affect about a quarter of Deutsche's roughly 100,000 employees. Needless to say, such a reduction is unmatched in the bank’s recent history, as it tries to counteract the impact of low interest rates and legal expenses. Though Deutsche Bank told employees last month bonuses would be reduced, the full magnitude of the cuts hadn’t been reported.

According to CAO Karl von Rohr, some workers in key positions - about 5,000 in all - will get a special long-term incentive tied to the bank’s performance that would be paid as far out as 6 years.

DB last year cut bonuses 17%, arguing at the time that deeper reductions would compromise its ability to hold on to top talent. Comparing DB's actions to its Euro competitors, RBS trimmed its bonus pool by just 8%, while Barclays cut awards for “front-office” staff by about 1%.

weighed heavily on results.

Given the fact that the bank has not yet accounted for all its legal expenses, Deutsche Bank has a 'ways to go before it's out of the woods'.