Brussels, 08/09/2015 (Agence Europe) - The number of banking bosses earning more than €1 million fell from 3,530 in 2012 to 3,178 in 2013, according to figures published by the European Banking Authority (EBA) on Monday 7 September.
Numbers of these bankers, who represent scarcely more than 0.1% of all those employed by the banking sector, were highest in the United Kingdom (2,086 people), Germany (397), France (162), Italy (138) and Spain (133). Elsewhere in the EU, there were no more than 40 in any single member state.
The EBA report also shows that the number of people whose activities have an impact on the risk profile of the bank which employs them increased slightly, from 53.68% to 59% between 2012 and 2013. “Nevertheless, the level of 'identified staff' differs significantly across similar institutions”, the document states.
The European authority notes that the ratio between the variable and fixed remuneration paid to identified staff has been reduced, standing at 104% in 2013. “In many business areas and institutions, this ratio is above the bonus cap” that was brought in subsequently under banking prudential rules and has applied since 2014, it stresses (see EUROPE 11201 and 10889). The report goes on to reiterate that remuneration practices were insufficiently harmonised in 2013.
In the EU, banking bonuses may not exceed the fixed level of remuneration (1: 1 ratio). However, the shareholders may decide by a majority to increase the ratio to a level of 1: 2, as long as 25% of the bonus is made up of a instruments which can be converted into capital and deferred for at least five years.
The EBA is to present a report on the application of these new rules by the end of this year. (Mathieu Bion)