Recent figures from the EU banking regulator showed that more than 3500 bankers in Europe earned €1bn (£833m) or more last year. Britain has 12 times as many high earners as did any other country.
The data from the European Banking Authority showed that 3529 bankers in the EU earned at least €1m in 2012. This was up 11% from 2011. Britain actually accounted for 2714 of the top earners, and this was up 11% from the year before. Certainly, this reflects London’s position as a dominant force in Europe’s financial center.
The new bonus cap will put many of these salaries into question, with the cap at five times fixed pay. At least 10,000 bankers, mostly from London, will be affected by the new cap. Many banks, including Barclays, Deutsche Bank and HSBC are expected to cut bonuses and raise fixed pay as a result.
The cap, which will be finalized next month according to the EBA will affect employees earning more than €500,000 a year and people whose bonus is at least €75,000 and 75% of their fixed pay.