A new report examining trends in what private bankers earn shows that the biggest banks give the largest salaries in the UK but that boutiques' pay structures may appeal more to some individuals in the industry.
A new report examining trends in what private bankers earn notes, perhaps unsurprisingly, that the biggest banks give the largest salaries in the UK but that boutiques' pay structures may appeal more to some individuals in the industry.
Agreus, the advisory and recruitment firm, has issued a report – Private Wealth Management and Family Offices Compensation Review – UK – points to how financial services companies have started to raise fixed salaries to keep their star performers due to recent regulatory changes, such as the European Union cap on bonus payments.
To read the report in full, which is being issued in partnership with this publication, click here.
Larger, top-tier banks pay overall payout of around 18-22 per cent of revenue, the report says, pointing out that if a person generates £1 million ($1.63 million) in revenue and earns a salary of £100,000, the bonus could be between £80,00 and £120,000. With boutique banks, they pay a salary from £80,000-£150,000, depending on experience. They will receive an overall payout of 30 per cent, often with bonuses between 15 per cent and 20 per cent in addition to salary from net revenue.
Getting clear information on remuneration is clearly vital for a private banker in deciding if he or she is pleased or dissatisfied with the situation; it also is important for employers to have such data to know if they are rewarding their employees sufficiently, or not, the report said.
“As expected, the larger banks often pay the highest fixed salaries rather than the boutique banks. However, boutique banks compensate for this by offering a much higher formula driven bonus structure which may appeal more to some private bankers,” Tayyab Mohamed, director at Agreus, said.