Top IFSC salaries can reach £140,000

Top chief executives working in the IFSC can earn a basic salary of up to £140,000, according to a new survey. It also found that chief executive bonuses can amount to as much as 70 per cent of basic salary. However, the average bonus was 26 per cent, compared to 22 per cent last year. There was also a continuing strong trend towards linking salaries to performance, according to Ernst & Young, which carried out the survey which looked at salaries in the financial services sector. It found that the average basic salary of chief executives working in the IFSC was £88,428, compared with £81,550 last year. "Pay in the IFSC is increasing much faster than inflation," the survey said.

The £140,000-plus salaries were reported in IFSC institutions which are managing their own funds and non-IFSC banks. Ernst & Young found that almost 60 per cent of all job holders in the financial services sector are paid a bonus. In the IFSC 73 per cent of employees were paid a bonus. This was up 16 per cent on last year.

Non-IFSC employees were also paid a bonus - 44 per cent of staff received one this year - up 23 per cent on 1996 figures. Bonus payments are a significant element of remuneration packages, the survey found.

"The vast majority of employees in the financial services sector enjoyed average percentage increases in salary of 7.24 per cent," it said. Overall, the average percentage increase in salaries for chief executives was 6 to 98 per cent overall. "This trend would seem to reflect the growth of business within the financial services sector, the increased duties and responsibilities in the case of a number of chief executives and a competitive market place for key executives," it said.

Mr Philip Galvin of Ernst & Young said that although companies wished to implement effective reward systems they realised the necessity of controlling payroll costs and the need to reward high achievers.

Some respondents were also concerned that that there was a shortage of staff with specific skills and said it was difficult to retain certain staff.

Mr Galvin said that in terms of other benefits such as mortgage facilities and personal loans companies outside the IFSC offer more. He also identified a very strong trend towards giving employees a company car or a car allowance. Of the 85 financial institutions surveyed, 30 per cent of employees were provided with a company car.