London’s bankers should seriously consider moving to Frankfurt, Germany if the UK leaves the EU on June 23, according to salary benchmark site Emolument.
With analysts predicting a UK banking collapse if a Brexit goes ahead, many workers in the sector will be considering their options.
Emolument’s salary research shows that Frankfurt beats Paris for pay at almost every level of banking — including analyst, VP, Director, and MD.
“London offers the highest reward for front office professionals in banking,” it says, “[But] moving to Paris would entail a steep pay-cut in case of relocation, even taking into account Paris’ 35% lower cost of living.”
It adds that though that pay cut still exists between London and Frankfurt, “with London being 60% more expensive than Frankfurt, bankers would be better off living in Frankfurt.”
But before packing their bags for Germany, bankers should note that bonus as a proportion of salary for workers in Frankfurt was far less than those in Paris. As such, Emolument encourages any potential financial emigrates to look at the big picture:
According to our data, satisfaction depends on the ratio of bonus to total compensation. Pay packages in Paris show lower base salaries than in Frankfurt but bonuses making up a larger portion of total earning, which as a results feels more satisfactory.
Here is a look at the average senior position pay in the banking sectors of London, Frankfurt and Paris:
Emolument Co-Founder and COO Alice Leguay further noted that London’s potential banker drain could even have an effect on the city’s property prices:
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 (such as Goldman Sachs to Paris). 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: look out for a shift in high-end property prices in Zone 1.
The EU referendum is still too close to call. A recent Survation poll showed the Remain and Leave sides virtually neck and neck with just one day to go until the vote.