Germany's Deutsche Bank
Any staff with a bonus at or below the maximum would see half of it in cash, and half of it in equity shares that they can sell in August, the source said.
Anything above that is paid in deferred compensation, the source said. The deferred portion will also be half cash and half shares, and will be paid out over a period of three years in equal annual installments, beginning in 2013.
The bonus restrictions, designed to affect the 2011 awards being paid out now, are most likely to hit Deutsche's investment bank, the unit where pay is usually higher.
Deutsche is still one of the best payers in the industry, even topping Wall Street rival Goldman Sachs
A rocky six months for bond and stock trading and deal-making has dented banks' income, however, adding to the pressure for firms to rein in pay, just as public scrutiny over big rewards is growing.
In the UK, for instance, where anger over banking bonuses has been a burning political issue since the financial crisis, the chief executive of state-controlled Royal Bank of Scotland
Deutsche's bonus pool was down 17 percent across the whole group for 2011, and rivals are taking similar steps. Switzerland's UBS cut the bonus pot for its investment bankers by 60 percent.
Deutsche Bank declined to comment.
Year-end bonuses at Barclays'
Like Deutsche, other banks are also tinkering with the structure of pay and putting caps on how much is paid out immediately, or increasing the amount paid in shares.
Bank of America Corp
Some of the most drastic measures have been at the banks bailed out in the crisis, like Royal Bank of Scotland
But pay in the industry may still not fall as hard as revenues.
Analysts at JPMorgan forecast that revenue across the investment banking industry -- excluding JPMorgan itself -- will fall 11 percent between 2010 and 2011. However, compensation is forecast to fall less far, pushing up the industry's compensation ratio to 46 percent, from 42 percent in 2010.
($1 = 0.7552 euros) ($1 = 0.6300 British pounds)
(Editing by Andrew Callus)