Falling income: Singapore’s bustling central business district. The city-state’s senior bank directors took a 36% cut last year, the harshest falls in the Asia-Pacific region, according to a compensation report. — Bloomberg
SINGAPORE: Hong Kong bankers enjoyed higher base salaries and bonuses in 2023 compared with their peers in Singapore, some of whom suffered the harshest cuts in the Asia-Pacific.
In Hong Kong, the average bonus of a vice-president in a bank rose 60% to US$72,131 in 2023 from US$45,058 in 2022.
But in Singapore, a similar-ranked banker suffered a 40% cut to US$43,539 in 2023 from US$71,721 in 2022, according to a compensation report from eFinancialCareers, a financial services careers platform.
Their base salaries also differed, with vice-presidents in Hong Kong earning an average of US$163,934 and those in Singapore earning US$152,446.
“All tiers of the Hong Kong finance hierarchy enjoyed higher bonuses than the previous year. Singapore bankers had a very different experience,” the report said, noting that lower-ranking bankers in the Republic were more protected from cuts.
Junior bankers in Singapore saw their average bonus cut by 2.2%. In comparison, the more senior directors took a 36% cut, the harshest falls in the Asia-Pacific region, which saw a 0.2% rise in average bonuses.
In Hong Kong, the average bonus of junior bankers rose 19%, and that of vice-presidents climbed 60%. Directors at banks got a 46% jump in bonus, while managing directors received a 29% boost.
The findings are based on eFinancialCareers’ global survey of 6,000 respondents from February to March 2024, which looked at the compensation and satisfaction of major financial centres and leading banks.
The higher compensations in Hong Kong were given out at a time when banks were cutting jobs.
Human resource consultants said the dynamics between the two cities have shifted with the Covid-19 pandemic, when China took a strict zero-Covid stance and kept its borders shut longer than Singapore, which chose to live with the virus.
Since then, Hong Kong has been grappling with some capital and talent outflows, along with a slower-than-expected recovery in mainland China.
Rising geopolitical tensions between the United States and China, as well as Beijing’s tighter capital controls, have also added to the unease among bankers and investors, they said.
Serena Fernando, senior consultant for banking and financial services at Robert Walters in Singapore, said Hong Kong bankers tend to earn more due to various factors, including longer working hours.
Professionals in Hong Kong work an average of four hours more per week than their counterparts in Singapore.
Hong Kong is still generally perceived as the traditional choice for most banking institutions to set up operations in, even as Singapore remains the prime hub for South-East Asia.
With inflation expected to stay high, larger nominal pay hikes are expected to continue in Hong Kong to offset rising costs, Fernando said.
Globally, the average bonus for all financial services professionals was up by less than 5% in 2023, rising from US$131,942 in 2022 to US$138,455 last year, the eFinancialCareers survey showed.
Bankers involved in mergers and acquisitions (M&As) saw their bonuses fall by an average of 4%, reflecting the dismal deal activity in 2023.
Those trading commodities saw their bonuses rise by 6%, while those involved in equities were hit by a 1% cut.
The survey also showed that high compensation did not equate to pay satisfaction, with some of the highest-paid financial services professionals being the least satisfied.
Those in investment banking had some of the longest working hours in the industry, with those involved in M&As reporting a 67-hour work week.
Operations professionals, credit salespeople, traders and technologists were most content with their pay.
The least satisfied people were those in risk and compliance. Only 19% of those at risk and 13% in compliance were happy with their pay. — The Straits Times/ANN
