Financial services salaries are set to rise by 4.3 percent in both Asia and Latin America this year, almost double the average increase forecast for North America and Europe, research published on Monday showed.
A survey by consulting firm Mercer found wage growth in the emerging market regions would outpace the 2.4 percent and 2.3 percent forecast for North America and Europe, despite concerns about how local economies are coping with falling commodity prices and a slowdown in Chinese growth.
Mercer’s Global Financial Services Executive Compensation Snapshot Survey, which reviewed the pay practices of 71 banks, insurers and other fnancial services firms across Europe, North America, Asia and South America in October and November, found that 61 percent of firms surveyed planned to increase their employees’ fixed pay by more than 5 percent.
But while the majority of firms are paying their staff more in fixed pay, the report also showed 58 percent were reducing variable pay by more than 5 percent.
These changes reflect continued efforts by financial services firms to promote a culture of strong governance and sound risk management, amid criticism that lucrative bonus schemes tempted staff to take undue risk, the consultancy said.
(Reporting by Sinead Cruise; editing by Alexander Smith)