American and European Banks Do NOT Pay the Same in London
It has been one of the biggest causes of anguish in the City - the difference between American and European banks when it comes to pay. However, figures now prove what many in the Square Mile have long complained of, American banks pay their directors on average 27pc more than European banks...
Total compensation packages vary widely depending on employer origin: American banks pay their directors on average 27% more than European banks
Although base salaries are comparable: Americans banks base salaries are only 8% higher than European banks
American banks are far more generous when it comes to bonuses: with bonuses 50% larger than European banks at GBP 180,000 and GBP 120,000 respectively
A different outlook on bonuses: European banks pay less in bonus than they do in base salary, with bonuses representing only x0.8 base; US banks, however pay bonuses 1.1x base salary
Even top tier banks are already in line with bonus cap regulations: at MD level, base salaries are within the recommended 2x bonus rule, currently at 1.45x
Although Directors are not usual staff directly affected by the upcoming EU bonus cap regulation, it seems that European banks are pre-empting the new rules by capping bonus/salary ratios across senior titles. We are eagerly waiting to see if this will impact the competitiveness of European banks in the coming years."
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