FINANCE - BANKS

Banking sector salaries

37 millionaire bankers in Luxembourg



According to the EBA, there have never been so many millionaire bankers in the European Union, partly because of the profits made by banks in the post-covid recovery year. Photo: Shutterstock

According to the EBA, there have never been so many millionaire bankers in the European Union, partly because of the profits made by banks in the post-covid recovery year. Photo: Shutterstock

According to the European Banking Authority, 1,957 bankers in Europe earned more than €1m in 2021, with 37 millionaire bankers working in Luxembourg.

The European Banking Authority published its traditional high income report for 2021 on Thursday. According to the report, 1,957 people working for banks and investment firms in the European Union received a salary in excess of €1m. This is an increase of 41.5% compared to 2020 and 36% compared to 2019, the previous record year.

“This increase is linked to the overall good performance of institutions, particularly in investment banking, trading and sales, the continued relocation of staff from the UK to the EU and a general increase in salaries,” said the European Banking Authority.

In Luxembourg, the EBA identified 37 bankers earning more than €1m, including one in the €2m-€3m category and two earning in the €4m to €5m range. The average remuneration per individual reached €1.486m.

Luxembourg 9th in the ranking

Germany has the most millionaire bankers (589, including seven who earned between €6-8m), followed by France (371), Italy (351) and Spain (221). Luxembourg came ninth in the ranking.

EU-wide, “the weighted average ratio of variable to fixed pay for all top earners has increased from 86.4% in 2020 to 100.6% in 2021. As variable pay is linked to the performance of the institution, the business line and the staff, the good financial performance of institutions has led to an increase in some bonuses. Other relevant factors supporting this trend can be identified in the easing of relevant covid restrictions and the continued relocation of staff to EU operations in the context of Brexit,” the EBA said.

This story was first published in French on Paperjam. It has been translated and edited for Delano.

Corrected, 24 January 9:30am: A previous version of this article mistakenly listed 36 as the number of bankers in Luxembourg earning more than €1m, due to a glitch reading the report on the EBA website, which rendered the €2m-€3m category invisible. There were, in fact, 37 bankers in Luxembourg earning more than €1m in 2021.