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13/10/2016
Global financial services firms responded to the introduction of a Europe-wide cap on bonuses by increasing fixed pay, cutting bonuses and increasing the reward focus on non-financial performance in 2015. These are the main findings of the latest edition of Mercer’s global financial services survey of executive compensation.
The report finds that 61% of organisations increased employees’ fixed pay by more than 5% last year, and that 58% cut bonuses by at least 5%. Total compensation levels are expected to remain static in 2016, within plus or minus 5%.
Vicki Elliott, senior partner and leader of the Global Financial Services Talent Network at Mercer, said:
‘The focus for financial services firms is firmly on trying to set the right tone from the top with strong governance and high involvement of risk management. Overall, total compensation levels remain broadly the same compared to levels prior to regulated bonus caps. However, banks, particularly in Europe, have significantly increased fixed pay levels improving the certainty of pay delivered to key risk-takers.’