61% of financial services employers increase pay by more than 5%

Vicki Elliott

Around two-thirds (61%) of employer respondents increased employees’ fixed pay by more than 5% in 2015, according to research by Mercer.

Its 11th annual Global financial services executive compensation snapshot survey, which is based on the pay practices of 71 global financial services firms, also found that 58% of respondents reduced variable pay by more than 5% last year.

The research also found:

  • 92% of respondents expect total compensation levels to remain relatively unchanged in 2016.
  • Global average base salaries are expected to increase between 2% and 2.7% in 2016.
  • Respondents in Latin America and Asia project average salary increases of 4.3% this year.
  • Respondents in North America and Europe forecast average salary increases of 2.4% and 2.3%, respectively.

Vicki Elliott (pictured), senior partner and leader of the Global Financial Services Talent Network at Mercer, said: “Overall, total compensation levels remain broadly the same compared to levels prior to regulated bonus caps.

“However, banks, particularly in Europe, have significantly increased fixed pay levels improving the certainty of pay delivered to key risk-takers.”