Online Reporter
The boom in dealmaking and trading has boosted the ranks of high earners at some of Europe’s banks, creating a stark divide with lenders that rely less on those businesses.
The number of Deutsche Bank AG employees making more than €1 million (US$1,1 million) last year shot up by 28 percent to 647, with one employee making as much as €18 million, the German lender said Thursday. It also lifted the bonus pool to its highest in a decade after a strong year for its investment bank.
At Spanish rival Banco Santander SA, the number of seven-figure earners increased 17 percent to 418 following an investment banking hiring spree, it disclosed last month.
The high level of income millionaires at firms with big or at least expanding investment bank operations compares with much lower figures for those focused more on retail or commercial banking.
UniCredit SpA had only 73 staff above the €1 million threshold last year.
Dutch lenders are at the bottom of the list. At partially state-owned ABN Amro Bank NV, there was just one employee last year who earned more than €1 million — Chief Executive Officer Robert Swaak, whose pay of €1,08 million barely cleared the bar.
ABN Amro and ING Groep NV have cut back their investment banking activities over the past decade.
They’re also subject to a stringent bonus cap under Dutch law, which they have highlighted as hiring impediment.
As long as the government remains a shareholder at ABN Amro, no variable compensation can be paid to executive board members and some senior bankers.
Banks in Europe are required to disclose the number of high earners each year. — Bloomberg
