Deutsche Bank AG’s management is slashing bonuses for its top executives in the wake of a massive settlement with U.S. authorities.

The bank’s management board sent a message to employees on Wednesday indicating that variable compensation would be restricted severely in the wake of a US$7.2-billion settlement with the U.S. Department of Justice (DoJ) in connection with allegations that the bank misled investors in the sale of mortgage-backed securities in the years leading up to the financial crisis.

Deutsche Bank’s management board announced that it will “substantially limit bonus payments for 2016” following the settlement. Specifically, the bank’s vice presidents, directors and managing directors will not receive any individual variable compensation, but will get the group component of their variable compensation for 2016, which is based on the bank’s overall performance. The bank says it plans to return to normal compensation programs for 2017.

“Over the past several months we made significant progress in resolving legacy matters and restructuring our bank,” the management board says in a statement. “However, there is still some way to go to strengthen our bank and make it more profitable again. This is why we have to take some tough decisions that will demand a great deal of us … This is especially true at a time when thousands of jobs are being cut and our shareholders are not receiving an annual dividend.”

The move follows an announcement that the bank has settled with the DoJ to resolve federal civil claims that it misled investors in the packaging, marketing and sale of residential mortgage-backed securities between 2006 and 2007. The US$7.2-billion settlement includes a US$3.1 billion civil penalty and US$4.1 billion in relief to underwater homeowners, distressed borrowers and affected communities.

In a statement, the bank’s CEO, John Cryan, also apologized for its conduct and said that it has “subsequently exited many of the underlying activities and comprehensively improved our standards.”

“This resolution holds Deutsche Bank accountable for its illegal conduct and irresponsible lending practices, which caused serious and lasting damage to investors and the American public,” adds U.S. attorney general, Loretta Lynch, in a statement. “Deutsche Bank did not merely mislead investors, it contributed directly to an international financial crisis.”