28 bankers in Ireland paid over €1m a year

28 bankers in Ireland paid over €1m a year
General view of One Canada Square in Canary Wharf, London, which houses the offices of the European Banking Authority.

Some 28 bankers in Ireland earn over €1m, according to regulator European Banking Authority.

The regulator found that almost 5,000 bankers across the EU earned over €1m in 2017, including bonuses.

The numbers of top earners in the EU are up from almost 4,600 bankers in 2016 and have climbed from 3,177 at the depth of the financial crisis, in 2011.

A few member states accounted for the rise in top earners but the numbers fell in Ireland, Cyprus, Denmark, Greece, Luxembourg, as well as Latvia, Romania, and Sweden, according to the EBA.

Germany had 390 in 2017, Italy 201, France 233, and Spain 161.

Almost three-quarters of all the top earners live in Britain because of the types of high-earning bonuses that come with investment and corporate banking in the City of London.

The EBA has surveyed bankers’ pay after an EU directive capped the amount lenders could pay out in bonuses following the bailout of European banks during the financial crisis.

The regulator said 87% of top earners have jobs which expose the bank and are signalled out as “identified staff”.

It said:

For staff earning €1m or more, such exclusions can be approved only in exceptional circumstances, with the condition that institutions have demonstrated that such staff members have, in fact, no material impact on the risk profile of the institution.

“The EBA will ensure that there is a consistent application of such exclusions, which need to be justified based on the individual case.”

The EBA said the average ratio between variable and fixed pay for the high earners continues to fall, down from 104% in 2016 to around 101% in 2017 as the cap bites. It was 123% in 2014 and 118% in 2015.

Many big London-based banks have since opened new hubs elsewhere in the EU in preparation for business after Brexit.

Britain had opposed the introduction of the bonus cap, saying it would prompt banks to blunt its impact by raising basic pay, making it harder for lenders to cut costs in a market downturn.

The Irish top earners include bankers based here working for international lenders. The issue of pay for bankers sparked into life when Finance Minister Paschal Donohoe last year voted down plans by AIB for an incentive shares scheme.

EU financial rules have been embedded into UK law as part of Britain’s preparations for Brexit on March 29.

Additional reporting from Reuters.

More on this topic

Irish banks commit to the bereavedIrish banks commit to the bereaved

Tony Spollen was an unwitting yet vital cog in exposing rotten heart of banking cultureTony Spollen was an unwitting yet vital cog in exposing rotten heart of banking culture

Barclays halts ‘last in town’ and remote branch closures in UK for two yearsBarclays halts ‘last in town’ and remote branch closures in UK for two years

ECB is creating a monster with zero interest rate policyECB is creating a monster with zero interest rate policy

More in this Section

Metro Bank chairman steps down but insists ‘the best is yet to come’Metro Bank chairman steps down but insists ‘the best is yet to come’

Malone’s  €5.7bn sale is blockedMalone’s €5.7bn sale is blocked

Reckitts, maker of Dettol, Harpic cuts its profits outlook againReckitts, maker of Dettol, Harpic cuts its profits outlook again

Just Eat in bidding war with rival €5.7bn Dutch offerJust Eat in bidding war with rival €5.7bn Dutch offer


Lifestyle

Steak night just got zingy.How to make Antoni Porowski’s hanger steak with charred limes, fresh chillies and herbs

Seasonal affective disorder is a lot more complex than just mourning the end of summer and being a bit glum. Liz Connor finds out more.Could your winter blues be something more serious? What to do if you’re worried about SAD

Ideal for a quick mid-week meal, eaten in front of Netflix, of course.How to make Antoni Porowski’s cauliflower steaks with turmeric and crunchy almonds

Lacemakers in Limerick want to preserve their unique craft for future generations and hope to gain UNESCO heritage status, writes Ellie O’Byrne.Made in Munster: Lace-making a labour of love rather than laborious industry

More From The Irish Examiner