EBA Report Analyzes Data for High Earners in Banks
The European Banking Authority (EBA) published its report on high earners for 2019. The report analyzes the data for 2019, which the competent authorities provided, and compares it to the 2018 data. The analysis shows that, in 2019, 4,963 individuals working for EU banks received a remuneration of more than EUR 1 million, which is mostly the same as in 2018. The report has been developed in accordance with Article 75(3) of the Capital Requirements Directive (CRD).
In 2019, the largest share of high earners of 3,519 (71% of the total number of high earners) was located in the UK. Most of the member states across EU registered a slight increase in the number of high earners, particularly Germany, France, and Italy. The increase of high earners resulted mostly from the impact of the relocation of staff from the UK to EU27 as part of Brexit preparations. In addition, for some institutions, the overall good financial results, particularly in corporate banking, and the ongoing restructuring and consolidations, which led to higher than usual severance payments, played an important role in the overall increase of high earners. The average ratio between the variable and fixed remuneration for high earners decreased from 139% in 2018 to 129% in 2019. In the business area of asset management, the average ratio of variable to fixed remuneration decreased from 378% in 2018 to 339% in 2019, still far exceeding the maximum ratio of 200%. This is mainly due to differences in the national implementation of CRD, that in many cases allows for waivers of some provisions when certain criteria are met. Following the amendments of the CRD, which started to apply as of the end of 2020, a higher degree of harmonization is expected.
The report includes data reported by UK institutions for high earners, as during the transitional period, UK institutions continued reporting data on high earners at EU consolidation level, covering all subsidiaries and branches established in EU member states. EBA will continue to benchmark remuneration trends biannually (e.g. for the performance years 2019 and 2020, a benchmarking exercise will take place in 2021 and will be published in the first quarter 2022). In addition, EBA will continue to publish data on high earners annually to closely monitor and evaluate developments in this area. The next report based on 2020 data will no longer include data for the UK. Institutions’ preparation for the UK withdrawal from the EU has affected the distribution of high earners across the EU with a number of high earners relocating from the UK to the EU.
Related Links
Keywords: Europe, EU, Banking, High Earners Data, Remuneration Practices, CRD IV, Operational Risk, Benchmarking Exercise, Governance, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
DNB Publishes Multiple Regulatory Updates in August 2021Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.