Stefan Jentzsch, chief executive of Dresdner Bank's renamed investment banking unit Dresdner Kleinwort, has revealed plans to tie staff bonuses more closely to profits made by individuals to cut costs and increase revenues.

Jentzsch told analysts at a conference in Munich the bank is "underperforming the market quite dramatically" in terms of its overall profitability and capital expenditure and is "clearly paying too much given the performance", Bloomberg reports.