U.K. and Swiss banks appear at the top end of the ranking of highest remuneration.
(PRWEB) November 11, 2014
A ranking of CEO pay at the top European banks compiled by SNL Financial shows little support for the idea that executive compensation and shareholder returns bear a strong correlation.
U.K. and Swiss banks appear at the top end of the ranking of highest remuneration, with UBS AG's Sergio Ermotti, Lloyds Banking Group Plc's António Horta-Osório and HSBC Holdings Plc's Stuart Gulliver each receiving compensation packages above €8 million in 2013. Credit Suisse Group AG's Brady Dougan is close behind, with a total pay package that year just shy of the €8 million mark.
Strikingly, while Credit Suisse, UBS and HSBC earned returns on average equity in the high single figures, Lloyds recorded a loss on average equity of 1.89%.
But comfortably ahead in the number one spot is Deutsche Bank AG's Anshu Jain, who received a pay package amounting to €10.0 million in 2013, including a €6.1 million long-term incentive plan, despite the bank only recording an ROAE of 1.21%. His co-CEO, Jürgen Fitschen, received €7.3 million of total pay.
Two state-supported banks appear on SNL's list: Lloyds and Royal Bank of Scotland Group Plc. At RBS, CEO Stephen Hester, who took over from the ill-fated Fred Goodwin, earned an annualized compensation package of €6.0 million in 2013. He was replaced in October of that year by Ross McEwan. Over the course of the year, the bank recorded a loss on ordinary average equity of 12.38%, although many analysts speaking to SNL Financial have said that Hester performed well given his task of turning the bank around after its government bailout.
Read the full report here: https://www.snl.com/InteractiveX/Article.aspx?cdid=A-29599304-12071