Reuters - JPMorgan and Goldman Sachs paid their top bankers in Britain an average of $1.5m (£1.1m) each in 2016, compared with $1 million for local rivals HSBC and Barclays, data released by the banks shows.
Data compiled by Reuters from 13 banks’ filings, some of which were released only late last month, shows they paid an average of $1.06m to such staff in 2016, down from $2m for the year ended December 31, 2013 when new European Union rules aimed at curbing banker bonuses took effect.
The Wall Street banks’ higher pay packages show how they have bounced back more quickly from the financial crisis than their peers in Britain, some of which have faced hefty post-crisis costs that have limited banker pay.
The data also shows that EU rules to rein in banker bonuses, blamed for driving excessive risk-taking in the run up to the 2008 crisis, are having an impact.
JPMorgan paid 672 staff in senior or risk-taking positions a total of $1.02bn in 2016 for an average of $1.52m each, while 724 Goldman bankers took home an average of $1.48m each, according to Reuters’ calculations from the filings.
US banks were also able to capitalise more effectively than European rivals on spikes in volatility in financial markets in 2016 from Britain’s June Brexit vote.
Europe’s top investment banks’ trading in fixed income products fell by 6% in the second quarter of 2016, while their five biggest US rivals reported a 21 percent increase to $13.1bn in revenue from the same business.
The disclosures are among the most comprehensive released on bankers’ pay in Britain, which remains a controversial subject ten years on from the financial crisis.
A report by the Chartered Institute of Personnel and Development released on Thursday showed that a median worker salary in Britain is about $38,493. In contrast, the average pay of a senior banker in 2016 was $1.06m.