Bankers shifting from London after Brexit may face lower pay

Around 10,000 finance jobs will be shifted out of Britain or created overseas in the next few years if the UK is denied access to Europe’s single market, according to a Reuters survey. (Reuters)
Updated 17 November 2017
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Bankers shifting from London after Brexit may face lower pay

LONDON: Bankers relocating from London to other European financial hubs following Britain’s exit from the European Union could face lower pay packages, according to an industry survey published on Friday by compensation consultant Emolument.
The average managing director, one of the more senior ranks in investment banking, earns £478,000 (SR2.1 million) a year in London compared with £312,000 in Paris, £298,000 in Frankfurt and £333,000 in Milan, the survey said.
Those figures comprise the average annual salary and bonus combined of 4,475 front-office bankers’ pay packages analyzed for the study, Emolument said.
Around 10,000 finance jobs will be shifted out of Britain or created overseas in the next few years if the UK is denied access to Europe’s single market, according to a Reuters survey of firms in September.
Frankfurt was by far the most popular destination for the new roles, the Reuters survey said, with Paris a distant second.
Frankfurt Mayor Peter Feldmann talked up the attractions of his city on Friday for bankers considering relocating, praising its security, international schools, transportation, diversity and night life.
Feldmann, opening a conference of elite bankers, said: “You can leave your body guards at home.”
“You hardly find gated communities because you don’t need them.”
“Every kid in our town knows what money is,” he said. “It is not something to be ashamed of, but it is a part of our identity.”
London leads the pay market across all ranks of investment banking from the most junior associates up to managing directors, the Emolument study showed. Frankfurt comes second for more junior staff while Paris is second to London in terms of pay for senior executives.
Pay is not the only consideration for bankers looking at which of the European financial centers offers the most attractive overall lifestyle. In Frankfurt, 70 percent of bankers interviewed said they had a good work-life balance, Emolument said, as against 61 percent for London and 59 percent for Paris.
“As regards moving away from London to other EU capitals, while pay may be lower, pain points such as schooling and generally higher quality of life should compensate bankers transferring to the continent,” Alice Leguay, co-founder at Emolument said.


OPEC oil ministers gather to discuss production increase

Updated 19 June 2018
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OPEC oil ministers gather to discuss production increase

  • Analysts expect the group to discuss an increase in production of about 1 million barrels a day
  • The officials were arriving in Vienna ahead of the official meeting Friday

VIENNA: The oil ministers of the OPEC cartel were gathering Tuesday to discuss this week whether to increase production of crude and help limit a rise in global energy prices.
The officials were arriving in Vienna ahead of the official meeting Friday, when they will also confer with Russia, a non-OPEC country that since late 2016 has cooperated with the cartel to limit production.
Analysts expect the group to discuss an increase in production of about 1 million barrels a day, ending the output cut agreed on in 2016.
The cut has since then pushed up the price of crude oil by about 50 percent. The US benchmark in May hit its highest level in three and half years, at $72.35 a barrel.
Upon arriving, the energy minister of the United Arab Emirates, Suhail Al Mazrouei, said: “It’s going to be hopefully a good meeting. We look forward to having this gathering with OPEC and non-OPEC.”
The 14 countries in the Organization of the Petroleum Exporting Countries make more money with higher prices, but are mindful of the fact that more expensive crude can encourage a shift to renewable resources and hurt demand.
“Consumers as well as businesses will be hoping that this week’s OPEC meeting succeeds in keeping a lid on prices, and in so doing calling a halt to a period which has seen a steady rise in fuel costs,” said Michael Hewson, chief market analyst at CMC Markets UK
The rise in the cost of oil has been a key factor in driving up consumer price inflation in major economies like the US and Europe in recent months.
Already US President Donald Trump has called on OPEC to cut production, tweeting in April and again this month that “OPEC is at it again” by allowing oil prices to rise.
Within OPEC, an increase in output will not affect all countries equally. While Saudi Arabia, the cartel’s biggest producer, is seen to be open to a rise in production, other countries cannot afford to do so. Those include Iran and Venezuela, whose industries are stymied either by international sanctions or domestic turmoil. Iran is a fierce regional rival to Saudi Arabia, meaning the OPEC deal could also influence the geopolitics in the Middle East.