If you go into banking now, you should be looking for a long-term career – not a quick buck. The days of earning millions and retiring at 35 are long gone, banking is now just a (well-paid) job and many in the industry earn decidedly average compensation.
At Barclays, for example, close to 72,000 – or 55% – of its employees earned less than £25k last year and 93% of staff at Deutsche Bank hauled in less than £100k. But what about the other end of the scale?
Now that the European Banking Authority has clamped down and forced all big European banks to reveal exactly what they pay their ‘material risk takers’ – senior bankers whose actions impact the overall organisation – we now know what your chances of earning seven figures are. And they are slim indeed.
Deutsche Bank has the highest number of millionaires across the bank, but even the proportion of people earning seven figures amounts to just 1% of total headcount, or 40% of material risk takers (senior bankers). This is low when you consider that most banks now include all managing directors in their MRT populations.
If you want to make the really big money at a European bank, Deutsche Bank and Barclays are the places to do it. Both have more people earning over €1m working for them, and tend to pay bigger overall packages. Deutsche has 20 people earning over €5m and Barclays has 18.
This compares well with U.S. banking rivals – which only released their 2014 figures earlier this year. Goldman Sachs has 24 people who earned over €5m in 2014, J.P. Morgan has 14 and Citi has 10.
We’ll be updating this article as both Credit Suisse and UBS report their latest figures.