Global pay imbalances in financial services

Global_payAsia-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

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.