Asia-Pacific pay increases for financial services workers are expected to be twice as high compared to Europe, the Middle East and Africa (Emea) – that’s 5% compared to 2%, or even pay freezes, in Europe.
Research by consultancy Mercers shows that base pay increases in the world’s financial services sector continue to be markedly different by region as pay continues to be publicly scrutinised in Europe and America.
Forecasted 2012 base pay increases in the Americas are 2.5%, but certain executive groups in Europe, like CEOs, are expected to experience another year of base salary freezes.
The data comes from Mercer’s Global Financial Services Incentive Plan Snapshot Survey, which reviewed remuneration practices and base pay increase data from 63 banks and insurance firms in Asia-Pac, Emea and the Americas.
“Financial services organisations are responding to significant changes in regulatory requirements concerning compensation policies, incentive plan designs and their governance. In Emea and the Americas they face keen public scrutiny,” said Vicki Elliott, senior partner at Mercer.
But there is an expectation for above-average pay increase globally for employees in “control roles” – which include risk management, human resources and legal – though the increases are seen to compensate for scaled-back bonuses. Firms have experienced regulatory pressure to weight the pay mix more to fixed salary rather than profit-led bonuses that may encourage excessive risk taking.
Globally, this employee group will receive an above average pay increase of around 3% in 2012.
©2012 funds europe