A new report by the European Banking Authority (EBA) reveals that two executives from Cypriot banks were among the 2,122 individuals in Europe who earned over €1 million in annual compensation in 2023. However, the names of the executives and the banks they represent were not disclosed.
The report, which tracks high-paying bank positions, shows a 5.2% increase in the number of high-compensated executives across Europe, rising from 2,017 in 2022 to 2,122 in 2023. This surge is attributed to strong banking sector performance and rising wages due to inflation.
In Cyprus, the two executives in the ‘MB Management function’ category had a total annual salary of €1.377 million in fixed compensation, with their variable compensation reaching €798,500. The EBA report highlights that the average total compensation for such executives across Europe was €1.088 million, with 58% of their earnings being variable and 60% of that being deferred.
Notably, the list excludes any executives in Cyprus from investment banking, retail banking, asset management, or corporate functions with salaries exceeding €1 million.
The report also provides a historical perspective on the high salaries of top Cypriot bankers. In 2014, there were four major bankers in Cyprus sharing a total of €8 million, a number which rose to nine executives in 2016, with a total of €15.4 million.
Meanwhile, in Greece, 15 banking executives earned over €1 million, double the number from 2022.
In terms of investment banking, the EBA data also shows a 32% drop in high-compensated executives in investment firms across Europe, from 325 in 2022 to 221 in 2023, largely due to a less successful financial year and reduced market volatility. The Netherlands saw the largest drop, with a 62.6% decrease in the number of high-earning investment firm executives.
Further details from the report show significant variations across countries. Austria recorded 32 banking executives with total compensation of €53.4 million and variable compensation of €34.3 million. In Belgium, 9 executives earned a combined total of €13.1 million, with €5.3 million in variable pay. Germany, with 351 executives, saw fixed compensation reach €474 million and variable compensation at €173 million. Italy had 31 executives with €34.7 million in fixed salaries and €52.5 million in variable pay.
Notably, there were no banking executives in Bulgaria, Croatia, or Estonia with compensation over €1 million.
