More UK bankers paid over €1m than in rest of EU combined

The European Banking Authority (EBA) has published a report analysing data on the remuneration of EU bank staff who received €1 million or more in total in 2012 and 2013. The report shows that there are more British bankers in this pay bracket than in all the other member states put together. The data has been aggregated by the EBA on the basis of the figures collected at member state level. The largest population of these 'high earners' in the EU is located in the United Kingdom (2013 – 2,086 out of a total of 3,178; 2012 – 2,714 out of 3,530).

Overall the report shows that the number of high earners has slightly decreased since 2012 and that the ratio between the variable and fixed remuneration paid to ‘identified staff’ was further reduced in 2013.

‘The European Banking Authority (EBA) is an independent EU Authority which works to ensure effective and consistent prudential regulation and supervision across the European banking sector. Its overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector.’

Other key findings include:

  • The number of high earners decreased from 3,530 staff in 2012 to 3,178 staff in 2013.
  • The percentage of high earners having a material impact on an institution's risk profile, ‘identified staff', has slightly increased from 53.68% in 2012 to 59.00% in 2013.
  • Remuneration practices within institutions were ‘not sufficiently harmonised’. In particular, the application of deferral and pay-out in instruments differed significantly across Member States and institutions.

The report says:

‘The ratio between the variable and fixed remuneration paid to identified staff was further reduced in 2013 and is now around 104% although in many business areas and institutions this ratio is above the bonus cap that applies for performance year 2014 and onwards. This is likely to further decrease following the entry into force of the Capital Requirements Directive (CRDIV) in 2014, which introduced the so called ‘bonus cap', thus limiting the ratio of the variable and the fixed component of remuneration to 100% (200% if approved by the shareholders).’
‘Benchmarking of Remuneration Practices at Union Level and Data on High Earners’, European Banking Authority, September 2015. Download the 74-page PDF report here: www.eba.europa.eu/-/eba-updates-on-remuneration-practices-and-high-earners-data-for-2013-across-the--