Bankers beware: Paris is not the city of love for pay – try Frankfurt instead
Bankers might not be so keen to relocate to the continent after figures released today showed it could seriously hamper their pay prospects.
The analysis of 8,065 salaries by salary benchmarking website Emolument.com discovered that pay packets for those in banking were lower on a nominal basis in both Frankfurt and Paris than they were in London.
The data revealed that bankers moving to the French capital would almost certainly notice a lightness in their pockets, with London pay for vice presidents around 44 per cent higher than in Paris and around 78 per cent higher for those at managing director level.
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Emolument discovered that the pay across the Channel was so comparatively small that it still felt measly even after taking into account Paris' lower living costs, which are typically around 35 per cent lower than in London.
|Job title||Median London total pay||Median Frankfurt total pay||Median Paris total pay|
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However, while those planning to move onto German soil may be less than thrilled to see a lower number on their payslip, given that the cost of living in London is around 60 per cent more expensive than Frankfurt, the move may be worthwhile.
On average, managing directors in London are paid just eight per cent more than their Frankfurt counterparts, while vice presidents receive only 19 per cent more.
"If Brexit were to occur, some banks have already announced they would be looking to relocate some of their front office activities to continental offices," said Alice Leguay, co-founder & operating chief at Emolument.com.
"Until now, prestigious banking jobs were usually to be found in London. An attractive set of opportunities on the continent could however give London bankers cause to leave the UK."
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Leguay also told City A.M. that she thought, except for a few exceptionally talented individuals, it would be unlikely that banks moving staff to Paris offices would bump their pay upwards to meet London standards, as the "influx" of staff would "flood the Paris market with finance professionals".
Leguay added: "Banks can really pick and choose. There's a huge amount of available talent out there."
Earlier this year, HSBC's Stuart Gulliver revealed in an interview with Sky News that the bank could shift around 1,000 jobs to Paris if the UK were to leave the EU, although he stressed that such a decision would depend on what terms applied to the country's exit.