Banking pay expectations 'hugely out of line''

20 June 2012

Bankers expect to receive pay packages that are far in excess of wages being awarded in other sectors, an expert has insisted.

According to Richard Saunders, the outgoing chief of the Investment Management Association (IMA), believes professionals in the financial industry are out of synch with the rest of the country when it comes to their pay.

While giving evidence to the Treasury Select Committee, Mr Saunders explained there is a "cultural issue" in terms of the amount of money such individuals believe they deserve.

"Expectations about earnings within the financial sector are wildly out of line with most other sectors of the economy," he noted.

The IMA official went on to say that remuneration has inevitably fallen in banks over the course of the last four years since the onset of the global economic downturn.

However, he indicated this has not resulted in the expectations of bankers being lowered - a trend he indicated is mystifying.

By Tony Aynsley

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