TY - GEN
T1 - High earners in the European banking sector
AU - Dertnig, Emma-Faye
AU - Huebler, Mario
AU - Hanzl, Jakob
AU - Prenner, Christoph
PY - 2022
Y1 - 2022
N2 - This analysis provides an overview of the findings presented in the most recent report on high earners published by the European Banking Authority (EBA) and complements these results with further insights gained from Bloomberg’s comprehensive Environmental, Social & Governance (ESG) dataset. We find that the number of high earners, as well as their average remuneration, increased in the period from 2010 to 2019. Most high earners worked in investment banking, accounting for 51% of the total. On average, high earners made most in Liechtenstein, followed by Malta, Spain and Ireland. Remuneration patterns were found to be rather heterogeneous across countries; as a case in point, the ratio between variable to fixed components of total remuneration came to around 60% in the UK and France in 2019. A correlation analysis for 2020 furthermore indicates that banks’ staff numbers and amount of total assets are strongly positively correlated with total remuneration, while their return on assets (ROA) and CEO’s term of office reveal a slightly negative correlation. By comparison, when conducting a more in-depth regression analysis over multiple years, we identify a positive relationship between total CEO remuneration and high staff numbers as well as increasing ROAs and price-to-book ratios.
AB - This analysis provides an overview of the findings presented in the most recent report on high earners published by the European Banking Authority (EBA) and complements these results with further insights gained from Bloomberg’s comprehensive Environmental, Social & Governance (ESG) dataset. We find that the number of high earners, as well as their average remuneration, increased in the period from 2010 to 2019. Most high earners worked in investment banking, accounting for 51% of the total. On average, high earners made most in Liechtenstein, followed by Malta, Spain and Ireland. Remuneration patterns were found to be rather heterogeneous across countries; as a case in point, the ratio between variable to fixed components of total remuneration came to around 60% in the UK and France in 2019. A correlation analysis for 2020 furthermore indicates that banks’ staff numbers and amount of total assets are strongly positively correlated with total remuneration, while their return on assets (ROA) and CEO’s term of office reveal a slightly negative correlation. By comparison, when conducting a more in-depth regression analysis over multiple years, we identify a positive relationship between total CEO remuneration and high staff numbers as well as increasing ROAs and price-to-book ratios.
UR - https://www.suerf.org/docx/f_bc4d9b0e9bdbd3186592452785c479cc_39955_suerf.pdf
M3 - Other scientific publications
ER -