High earners in EU banks rise 9.0 percent in 2024
The European Banking Authority (EBA) reports a 9.0 percent increase in high earners in EU credit institutions and investment firms in 2024. The total number of staff earning EUR 1 million or more reached 2,554, driven by strong profitability and favorable economic conditions.
Profitability fuels surge in top earners
The total number of high earners in EU credit institutions and investment firms increased by 9.0 percent to 2,554 in 2024, up from 2,343 in 2023.
This growth was particularly pronounced in investment firms, where the number of high earners surged by 30.3 percent to 288 (from 221 in 2023).
Credit institutions also saw an increase of 6.8 percent, reaching 2,266 high earners (from 2,122 in 2023).
The EBA attributes this rise primarily to strong profitability, driven by higher interest income, active trading, and a rebound in advisory and capital markets.
Favorable economic conditions, such as elevated interest rates and renewed M&A activity, alongside competitive pay adjustments to attract and retain top talent, also contributed significantly to this trend across the financial sector.
Gender gap persists, bonuses soar
A persistent gender imbalance remains among high earners.
In credit institutions, 89.1 percent of high earners were male in 2024, while for investment firms, 96.9 percent were male.
The weighted average ratio of variable to fixed remuneration for all high earners in credit institutions increased to 98.5 percent in 2024, up from 87.8 percent in 2023.
In investment firms, where bonus caps do not apply, this ratio significantly increased to 358.7 percent, compared to 304.8 percent in 2023.
The report also notes that deferred variable remuneration among investment firms remains low, at around 34 percent.
Bonuses up, balance down
The EBA's latest data highlights a growing concentration of wealth at the top of the financial sector, driven by market conditions.
The persistent gender imbalance remains, while rising variable pay ratios suggest regulatory bonus caps are increasingly circumvented for investment firms.
This underscores the ongoing challenge for supervisors to ensure fair and balanced remuneration practices across the EU financial landscape.