“Banks have largely maintained a cautious approach, focusing on consolidating existing teams rather than expanding headcount. Salary increases have remained moderate, and in some cases, open positions have gone unfilled,” stated executive search firm Morgan Philips in its 2025 Luxembourg Banking Salary Guide, setting the tone for a subdued recruitment landscape in Luxembourg’s banking sector.

Despite stable macroeconomic conditions, Luxembourg’s banks cut back on hiring in 2024, with salary growth firmly held in check. Recruitment activity plateaued as institutions prioritised consolidation over expansion. Demand rose selectively for client-facing roles in corporate banking, while broader hiring concentrated on compliance and senior leadership, reflecting strategic caution across the sector.

Executive pay far outpaces the rest of the sector

The highest salaries continued to be concentrated in executive and Luxembourg Financial Sector Supervisory Commission (CSSF)-registered roles. Chief executives earned between €220,000 and €400,000 per year in gross compensation, excluding bonuses and benefits. General counsels received up to €200,000, while newly registered chief compliance officers started at €130,000, rising to €200,000 after six years. Similarly, chief risk officers and chief internal auditors reached €180,000 after six years in post.

Independent non-executive directors, often involved in audit or remuneration committees, received between €15,000 and €55,000 per mandate, reflecting the part-time nature of their engagements.

Front-office profiles in high demand

While hiring remained muted across most areas, demand for client-facing roles--particularly in corporate and investment banking--picked up. Relationship managers and business developers saw some of the highest salary ceilings outside the executive tier, with senior professionals earning up to €180,000 annually. Heads of Wealth Management earned more than €180,000, while senior private bankers earned between €110,000 and €180,000.

Product managers in investment banking commanded between €55,000 and €110,000 depending on experience, while execution traders and dealers, typically in high-pressure roles tied to market performance, earned between €65,000 and €100,000.

Compliance, AML and risk remain core recruitment areas

Recruitment remained steady in compliance-related functions, underpinned by CSSF regulatory requirements and growing scrutiny in cross-border finance. Junior compliance officers earned between €55,000 and €75,000, rising to €115,000 for senior staff. Department heads could earn between €115,000 and €200,000.

In anti-money laundering (AML) and know-your-customer (KYC) roles, salaries ranged from €50,000 to €110,000 for non-managerial positions, with heads of function earning up to €160,000. Risk managers earned between €60,000 and €120,000, increasing to €180,000 for department heads.

Steady pay for legal and internal audit professionals

Legal counsels earned between €65,000 and €130,000 depending on seniority, while internal auditors received between €55,000 and €115,000. Department heads in internal audit commanded between €115,000 and €180,000. Paralegals and corporate secretaries earned between €50,000 and €90,000.

Interestingly, the gender distribution in legal roles leaned towards women, with women comprising 59% of legal counsel positions and 75% of paralegal roles.

Support functions show modest salaries but strong hiring

Human resources roles, which saw very high hiring demand, offered junior salaries of €50,000 to €65,000, climbing to €95,000 for senior staff and up to €130,000 for department heads. Payroll professionals earned between €55,000 and €100,000 depending on experience. Executive assistants, a role still heavily dominated by women at 92%, were paid between €55,000 and €90,000.

Marketing and communications salaries remained comparatively low, ranging from €42,000 to €85,000, with department heads capped at €120,000.

Finance roles maintain solid middle-tier pay

In finance and accounting, junior professionals in accounting earned from €45,000, reaching €110,000 at senior level. Department heads earned more than €110,000. Controllers earned between €55,000 and €110,000, with heads of controlling receiving up to €150,000.

Treasury roles, typically held by men (76%), ranged from €50,000 to €110,000, with heads of function paid up to €130,000.

Back office and operational roles in settlement, financial operations and oversight earned from €45,000 to €100,000, depending on seniority. Although not the highest-paying, these roles remained integral and moderately sought after.

Outlook

Although broader recruitment remained flat, the guide noted emerging developments in corporate banking, particularly around alternative investment fund services, foreign exchange and payments. These niche areas may help Luxembourg retain its role as a specialist financial hub.

The full report is available .