Copy
Emolument.com Press Release: Is Luxembourg the best country for Finance professionals?
View this email in your browser

Is Luxembourg the best country for finance professionals?

FOR IMMEDIATE RELEASE

NOTE: When using the data below, it is essential that you refer to Emolument.com as ‘salary-benchmarking site’ and use hyperlinks.

With its business-friendly legislation, its alleged big paychecks and its culture of confidentiality, Luxembourg is viewed as a financier’s safe-haven by the rest of Europe.

How is that reflected in finance professionals' earnings in Luxembourg?

In its latest study, Emolument.com found that even though Luxembourg's relatively high base salaries and attractive work-life balance makes it an alluring location for finance professionals, Switzerland is one step ahead when it comes to pay. 

Findings are based on 3,082 European finance professionals.
 

Asset Management earnings

Country Salary Bonus Total
Switzerland € 130,000 € 23,000 € 153,000
UK € 94,000 € 37,000 € 131,000
Ireland € 100,000 € 23,000 € 123,000
Netherlands € 90,000 € 33,000 € 123,000
Luxembourg € 99,000 € 14,000 € 113,000
Germany € 92,000 € 19,000 € 111,000
France € 76,000 € 25,000 € 101,000
Belgium € 79,000 € 17,000 € 96,000
Italy € 70,000 € 23,000 € 93,000
Spain € 75,000 € 15,000 € 90,000
Median figures based on 1,372 Asset Management professionals at VP level in Europe.

Not an incentive-based pay structure : In the asset management industry, Luxembourg rank only 5 out of 10 when it comes to pay. While employers in Luxembourg offer very competitive base salaries (Luxembourg ranks third in Europe at €99,000), bonuses only accounts for 12% of total compensation, the lowest percentage in Europe.


Middle & back office earnings

Country Salary Bonus Total
Switzerland € 116,000 € 10,000 € 126,000
Luxembourg € 93,000 € 7,500 € 100,500
UK € 82,000 € 10,000 € 92,000
Netherlands € 83,000 € 7,000 € 90,000
Ireland € 67,000 € 4,500 € 71,500
France € 55,000 € 7,500 € 62,500
Belgium € 55,000 € 7,500 € 62,500

Median figures based on 841 Middle & Back office VPs in Europe (Note: not enough data to feature Germany, Italy and Spain).

Middle & back office : a Luxembourg speciality. Thanks to its business-friendly laws, Luxembourg has historically been a place where banks have located their clearing and support functions. In countries where front office jobs and back office coexist, the latter is often poorly considered. In Luxembourg however most of the banking jobs are middle and back office functions: Luxembourg's middle & back office professionals are doing well at second place behind Switzerland.
 

Accounting & audit earnings

Country Salary Bonus Total
Switzerland € 93,000 € 4,500 € 97,500
Luxembourg € 48,000 € 2,500 € 50,500
UK € 50,000 € 0 € 50,000
France € 47,000 € 2,500 € 49,500
Belgium € 48,000 € 0 € 48,000
Netherlands € 43,000 € 1,400 € 44,400
Ireland € 43,000 € 0 € 43,000
Italy € 34,000 € 2,000 € 36,000
Spain € 31,000 € 0 € 31,000
Median figures based on 869 accounting & audit senior consultants working in Europe (Note: not enough data for Germany).

#1 in the EU… Accounting & Audit firms are well implemented in Luxembourg, with all of the Big 4 (PwC, EY, KPMG, Deloitte) competing to attract the best talent, pushing up compensation packages: Luxembourg accountants and auditors rank second in Europe, with a total compensation of €50,500.

… But not in Europe: Even though Luxembourg is ahead of most European countries when it comes to paying accountants and auditors, it lags behind Switzerland and its strong currency, which crushes competition: at €97,500, total compensation in Switzerland for senior consultants are almost twice as high as in Luxembourg.

How about work-life balance ?

Country Awful Satisfactory Great
Luxembourg 11% 78% 11%
Belgium 18% 46% 36%
France 29% 44% 27%
Switzerland 33% 45% 22%
UK 38% 42% 20%
Ireland 38% 44% 18%
Italy 44% 50% 6%
Germany 45% 45% 10%
Netherlands 47% 20% 33%
Spain 55% 30% 15%
Based on a survey of 954 professionals working in Europe 

Undisputed victory for Luxembourg : With 89% of Luxembourg professionals marking their work-life balance as great or satisfactory, Luxembourg is the clear European leader when it comes to quality of life in finance. A powerful statistic, especially considering the high ratio of middle and back office employees in this sample, which are professionals usually highly dissatisfied when it comes to work-life balance, having to stay behind after markets hours and bear huge pressure from their front office colleagues.

Alice Leguay, Co-Founder & COO at Emolument.com said: 'Despite a lack of aggressive bonus culture, and therefore few hopes of 'making it big' for Luxembourg finance professionals, relatively high - and predictable - salaries as well as a healthy attitude to work-life balance make Luxembourg an attractive European location, far from expensive financial centres such as London, Paris or Geneva while still offering extensive professional access to global employers in the financial sector.'
Visit Emolument.com
Copyright © 2016 Emolument, All rights reserved.


unsubscribe from this list    update subscription preferences