Chief executives working in Europe's banking sector received an average of €2.8 million each in cash compensation - including an average bonus of 121 per cent of base salaries - last year, according to the latest Mercer survey

Although not quite on par with their banking counterparts, chief executives of insurance companies in Europe were also well rewarded, receiving an average cash compensation of €2.3 million in 2006. Bonus levels for insurance chief executives were also slightly lower than in the banking sector, but still averaged an impressive 101 per cent of basic salaries. Overall, chief executives in Europe's financial sector received a 3.5 per cent salary increase in 2006. This is expected to reach 3.9 per cent this year.

However, banking chief executives received just 25 per cent of their total compensation as basic salary last year, while chief executives of insurance companies received 29 per cent as base pay.

Long-term and performance-related incentives made up the difference between cash and total compensation.