Banking Blues

From the March 2013 issue of Columbus CEO

Bad news for financial services execs: Don’t expect a fatter paycheck this year, at least according to Mercer’s Financial Services Executive Compensation Snapshot Survey.

Mercer asked 63 banks and insurance companies operating in Asia, Europe and North America about their compensation outlook for 2013. Most expect corporate bonuses will be flat, though 30 percent expect to shrink bonus pools. Average salary increases for 2013 are projected to dip, to between 2.2 percent and 2.5 percent versus 2.9 percent last year.

Worse news: Pay freezes are still in effect for 49 percent of banking CEOs and 38 percent of their direct reports. Less than 20 percent of respondents expect to freeze salaries for other executives.