European bankers seem like a beleaguered bunch compared with their U.S. peers.
They work at banks that are losing global market share. Their continent isn?t growing as quickly as the U.S., which means there often aren?t as many opportunities to make money. As if that weren't enough, European bankers received lower 2016 bonuses than the year before.
Compensation Cuts
European banks cut 2016 bonus pools as they sought to preserve more capital
At first blush, it seems bonus cuts only serve to make European banks that much less competitive when trying to attract top talent. This potentially could widen the divide between their performance and that of their American rivals going forward.
So far, however, European banks are finding other ways to lure top talent, including boosting their base salaries. In some select cases, European banks have compensated high-earning investment bankers more richly than U.S. banks have.
UBS Group AG, for example, handed out the smallest bonuses in four years when it cut its 2016 pool by 17 percent. But it paid its investment bankers a greater proportion of their unit?s revenues than JPMorgan Chase & Co. did, with a compensation ratio of 40 percent, compared with 27.1 percent at the biggest U.S. bank, according to Bloomberg Intelligence data.