Salary survey: Large differences in private bankers' pay

There are significant variations in average compensation packages at international private banks based in the UK, according to a survey by the headhunter Trezona & Co.

At managing director level, cash compensation could be as little as 120,000 or as much as 270,000 - but bonuses could take the total to as much as 540,000. There may be equity options on top, and numerous other benefits ranging from preferential loans to membership of social clubs.

Department heads, the second level down, could earn basic pay of 80,000-150,000, which bonuses could swell to between 140,000-260,000.

Another step down, senior relationship managers could find themselves earning 70,000-130,000, which could could rise to almost 250,000 including bonus. At such senior levels also, individuals might get equity bonuses.

One of the more surprising results was the compensation of senior fiduciary and trust specialists, according to Guy Trezona, the founder of Trezona & Co, which focuses on private banking and private asset management.

He said: &quotThese people can in some cases be paid peanuts in banking terms (at the lower level 75,000), but could also end up earning 500,000 with a cash bonus. Last year I knew someone who was on 800,000."

Asset gatherers, whose role is to bring in the clients, may be paid a salary of only 70,000-95,000, but also receive between 35% and 50% of revenues created.

The figures apply to private banks operating in the UK, regardless of national origin. But Trezona notes a significant difference in compensation between portfolio managers at UK banks and US banks based in the UK.

At the former, base salary may be between 60,000 and 70,000, rising to a total of 70,000-90,000 including a cash bonus, while the US institutions range from a base of 85,000-100,000 and a total of between 120,000-150,000 for the same role.

The issue of remuneration is concentrating the minds of the private banking industry, which is seeing a growing trend to avoid cash bonuses in favour of paying staff in equity, equity options or restricted stock.

While the industry struggles to find the right balance, private banks are under pressure. Credit Suisse group in Zurich is the latest institution to announce job cuts in its aim to eliminate overlap in the bank's Swiss retail and private-banking operations.