Leading banks considerably raise salaries

Leading banks – Merrill Lynch, UBS, Citigroup considerably raise salaries of top-managers of the investment divisions to stop outflow of employees. To entice the best managers from problem banks there is all more difficult, informs Financial Times. From the end of 2008 till May, 2009 the banks adhering экспансионистской to strategy of development (Barclays Capital, Credit Suisse, Deutsche Bank), have employed some hundreds heads of the top echelon which has left the financial companies which have more suffered from crisis, including Merrill Lynch and UBS.

«I would tell, as UBS, and Merrill have lost on 25 % of the best people», – the chairman London headhunting has noted agencies Hanover Search Patrick Fild. Despite financial crisis and world recession, salaries of leading bankers now are close to level of the boom observed 2 years ago. One of Financial Times sources recognised that its bank pays to top-managers to 80 % from level of 2007.

To stop top management outflow, Merrill Lynch, UBS and a number of other banks for last 4-5 weeks have considerably increased base salaries of top-managers. Citigroup now plans to follow to their example. Salaries of the operating directors, several months ago averaging 250 thousand dollars a year, have jumped up in June to 400 thousand. Problem banks also promise to the employees the same bonuses, as more successful financial companies, trying to entice top-managers.

Similar growth of incomes and bonuses of bankers can disturb regulators as contradicts their efforts to force the financial company to pay services of top-managers proceeding from long-term indicators of efficiency of their work.