Monday

26th Aug 2019

UK has 75 percent of EU's millionaire bankers

  • City of London: More than 75 percent of Europe's millionaire bankers are in the UK (Photo: harshilshah100)

More than 75 percent of Europe's banking millionaires are based in the UK, according to a report by the EU's bank watchdog.

More than 2,700 UK-based bankers were paid more than €1 million in 2012, compared to a further 794 across the rest of the EU. Germany was a distant second with 212, followed by France with 177. Ten EU countries had no banking millionaires.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

The data, contained in the London-based European Banking Authority annual 'High Earners' report, reveal the extent of the UK's dominance of the banking rich-list.

The report indicates that 2,188 high earners worked in investment banking, with a mere 62 working in retail banking. A further 198 financiers worked in asset management and 266 in other business areas. The average top banker raked in a total of €1.95 million.

The figures include payments to staff working for subsidiaries or branches of any EU-parent institution based in another EU country, as well as staff in branches of third country institutions.

The report also revealed striking differences across countries in the proportion of pay made up of bonus payments. While most countries saw an average bonus payment of between one and two times salary, the average executive in France and the UK received a bonus four times larger than salary.

Since the 2008-9 financial crisis, lawmakers have made repeated steps to rein in bank pay, particularly by limiting bonus payments to financiers, on the grounds that a rampant bonus culture encouraged excessive risk-taking.

Earlier this year, MEPs and ministers agreed to cap bankers' bonuses to the equivalent of their salary. Payments worth up to two times salary will also be permitted but only on the basis of a vote by shareholders.

The rules are set to be introduced next year and will apply to over 8,000 banks across the EU.

However, they are currently subject to a legal challenge launched by the UK government in September.

The UK, which was alone in opposing the rules, has argued that limits on pay would do nothing to make the financial sector safer and would encourage banks to increase basic salaries.

Exclusive

Brexit row delays financial products transparency review

A European financial regulatory body set up after the financial crisis is at loggerheads with the European Commission over whether to carry out a transparency review of certain financial products. The reason: Brexit.

Commission defends Mercosur trade deal

EU commissioners defended a far-reaching free trade agreement between the EU and four Latin American countries, against critics who fear it will damage European farmers' livelihoods and the global environment.

EU hesitates to back France over US tariff threat

France has passed a new tax on tech companies that will affect US global giants like Facebook. Donald Trump has threatened retaliatory tariffs over it. The EU commission says it will "coordinate closely with French" on the next steps.

EU banks more vulnerable to shocks than feared

Eurozone banks, such as Deutsche Bank, might be much more vulnerable to a repeat of the 2008 financial crisis than EU "stress-tests" have said, according to a new audit.

Opinion

Why von der Leyen must put rights at core of business

Ursula von der Leyen's in-tray must include those European executives on trial for systematic workplace harassment, the break-up of European slavery rings, and allegations of European companies' abuse in palm oil, including child labour, land grabs, and deforestation.

Stakeholders' Highlights

  1. UNESDAUNESDA reduces added sugars 11.9% between 2015-2017
  2. International Partnership for Human RightsEU-Uzbekistan Human Rights Dialogue: EU to raise key fundamental rights issues
  3. Nordic Council of MinistersNo evidence that social media are harmful to young people
  4. Nordic Council of MinistersCanada to host the joint Nordic cultural initiative 2021
  5. Vote for the EU Sutainable Energy AwardsCast your vote for your favourite EUSEW Award finalist. You choose the winner of 2019 Citizen’s Award.
  6. Nordic Council of MinistersEducation gets refugees into work
  7. Counter BalanceSign the petition to help reform the EU’s Bank
  8. UNICEFChild rights organisations encourage candidates for EU elections to become Child Rights Champions
  9. UNESDAUNESDA Outlines 2019-2024 Aspirations: Sustainability, Responsibility, Competitiveness
  10. Counter BalanceRecord citizens’ input to EU bank’s consultation calls on EIB to abandon fossil fuels
  11. International Partnership for Human RightsAnnual EU-Turkmenistan Human Rights Dialogue takes place in Ashgabat
  12. Nordic Council of MinistersNew campaign: spot, capture and share Traces of North

Latest News

  1. Western leaders disagree on Russia, Iran, and Brazil
  2. Belgium: Parties clash on Reynders as EU commissioner
  3. Spain heading for yet another general election
  4. EU to discuss Brazil beef ban over Amazon fires
  5. 'Our house is burning,' Macron says on Amazon fires
  6. What happens when trafficking survivors get home
  7. EU states and Russia clash on truth of WW2 pact
  8. EU considers new rules on facial recognition

Join EUobserver

Support quality EU news

Join us