The 500k cap is certainly having a severe impact on hiring at senior roles in Irish banks. In many cases they are competing with UK banks for the same people and the UK doesn’t have a cap.
The bonus thing also is a disincentive for many people in junior levels, particularly when they can go into a finance role elsewhere and join a nice bonus pool.
Oddly, I think this is misreporting of another article written by the same paper. Or at least some editorialisation for effect.
The issue affecting hiring and retention of Junior staff in banks is that [the banker’s pay policy also prohibits banks from providing health insurance, childcare and bonuses to even the most junior staff.](https://www.oireachtas.ie/en/debates/question/2021-03-31/64/)
The cap of €500,000 is part of the same set of rules, but it seems completely understandable to me that someone might turn down an entry level job in a bank if health insurance is not provided and bonuses cannot be paid.
Are finance jobs here anything like those in the US? Because that cap would no doubt put downward pressure on everyone’s compensation (can’t have the peasants making the same money as the execs, now!), and I could certainly see why new grads wouldn’t be keen to subject themselves to 100+ hour weeks for the next several years if they’ll only be barely into the low six figures by the time they have their incapacitating mental break or their third stress-induced heart attack and have to give it up.
I don’t like bankers all that much but 500k is fuck all on in the finance industry. It’s a case of paying peanuts and getting monkeys as all the best talent goes elsewhere. Take for example Francesca McDonagh went from the CEO of BoI on 500k a year to 1.9M as the COO of Credit Suisse, which has quadrupled her pay in a role one down from the one she used to have here.
The banks are essentialy competing with the tech sector for skilled staff, and are having problems attracting people with “portable” skillsets like SRE, cloud, devops, etc.
On the mainstream banking side, they’re simply having problems because they don’t pay well for entry level jobs- on average if you had the option of working for a tech company or a bank at the same level, with the same salary, which would you pick?
I know people are going to rush to say this is bullshit but there is some logic to it.
If you’re a young Irish grad with a top degree from a top university who can basically go anywhere then you are probably going to sit down and think about the long-term prospect of each career available to you.
Go into law or tech in Ireland you could be on a multimillion salary by your 40s. Go into banking and you cap-out at 500k which, while an incredible salary, doesn’t buy what it used to with house prices and inflation being what they are.
If your dream is to go into banking your only financially sensible option is to leave Ireland which means the banking sector is having a brain drain. Everybody will agree the banking sector in Ireland is completely lethargic, complacent, and in need of a good kick up the arse. Banking won’t transform over night if the cap is lifted but it is part of the problem alongside our archaic repossession laws.
Whether you agree with remuneration caps or not, it’s worth remembering that caps on remuneration is largely a measure regulated at EU level (not an invention of the Irish government) under the Capital Requirements Directive.
EDIT: Wow – once again downvoted for just adding a factually accurate point to the discussion. Well done, guys! Really top notch intellectual prowess!
yah. Shuuuuuuuure they are
‘500k!? What am I supposed to do when my car’s tank is empty? Refill it like some filthy commoner instead of abandoning it and getting a new one airlifted in by Chinook helicopter like I normally do?’
Dublin living wage
Ahhhhh… other kids wanted to be astronauts, firefighters or whatever. I always wanted to be a banking lobbyist. Even at age 4 I would pretend to have off the books backroom meetings with politicians and central bank representatives. But with that cap? No thanks. I’m gonna shift my future to the US where I can lobby to remove environmental protections. That’s where the money is.
You’ll need 500,000 by December if prices keep going up lol
What BS!
The clue is in the article. Lobbyists are there for one thing. To get laws altered or watered down so they become ineffectual to the ones that employed them in the first place. If it was dug into more it is the banks that are the employer. FFFG will get the central bank to change their ways. Never forget what they did. Very few bankers if any spent a night in mount joy.
Banks are cunts, really hoping this web3 business takes off to cut out this parasite of a middle man competely
18 comments
https://www.irishtimes.com/business/2022/09/05/windfall-tax-warning-student-housing-crunch-and-has-trackers-time-passed/
That is some mental gymnastics…
Bullshit?
The 500k cap is certainly having a severe impact on hiring at senior roles in Irish banks. In many cases they are competing with UK banks for the same people and the UK doesn’t have a cap.
The bonus thing also is a disincentive for many people in junior levels, particularly when they can go into a finance role elsewhere and join a nice bonus pool.
Oddly, I think this is misreporting of another article written by the same paper. Or at least some editorialisation for effect.
The issue affecting hiring and retention of Junior staff in banks is that [the banker’s pay policy also prohibits banks from providing health insurance, childcare and bonuses to even the most junior staff.](https://www.oireachtas.ie/en/debates/question/2021-03-31/64/)
The cap of €500,000 is part of the same set of rules, but it seems completely understandable to me that someone might turn down an entry level job in a bank if health insurance is not provided and bonuses cannot be paid.
Are finance jobs here anything like those in the US? Because that cap would no doubt put downward pressure on everyone’s compensation (can’t have the peasants making the same money as the execs, now!), and I could certainly see why new grads wouldn’t be keen to subject themselves to 100+ hour weeks for the next several years if they’ll only be barely into the low six figures by the time they have their incapacitating mental break or their third stress-induced heart attack and have to give it up.
I don’t like bankers all that much but 500k is fuck all on in the finance industry. It’s a case of paying peanuts and getting monkeys as all the best talent goes elsewhere. Take for example Francesca McDonagh went from the CEO of BoI on 500k a year to 1.9M as the COO of Credit Suisse, which has quadrupled her pay in a role one down from the one she used to have here.
The banks are essentialy competing with the tech sector for skilled staff, and are having problems attracting people with “portable” skillsets like SRE, cloud, devops, etc.
On the mainstream banking side, they’re simply having problems because they don’t pay well for entry level jobs- on average if you had the option of working for a tech company or a bank at the same level, with the same salary, which would you pick?
I know people are going to rush to say this is bullshit but there is some logic to it.
If you’re a young Irish grad with a top degree from a top university who can basically go anywhere then you are probably going to sit down and think about the long-term prospect of each career available to you.
Go into law or tech in Ireland you could be on a multimillion salary by your 40s. Go into banking and you cap-out at 500k which, while an incredible salary, doesn’t buy what it used to with house prices and inflation being what they are.
If your dream is to go into banking your only financially sensible option is to leave Ireland which means the banking sector is having a brain drain. Everybody will agree the banking sector in Ireland is completely lethargic, complacent, and in need of a good kick up the arse. Banking won’t transform over night if the cap is lifted but it is part of the problem alongside our archaic repossession laws.
Whether you agree with remuneration caps or not, it’s worth remembering that caps on remuneration is largely a measure regulated at EU level (not an invention of the Irish government) under the Capital Requirements Directive.
EDIT: Wow – once again downvoted for just adding a factually accurate point to the discussion. Well done, guys! Really top notch intellectual prowess!
yah. Shuuuuuuuure they are
‘500k!? What am I supposed to do when my car’s tank is empty? Refill it like some filthy commoner instead of abandoning it and getting a new one airlifted in by Chinook helicopter like I normally do?’
Dublin living wage
Ahhhhh… other kids wanted to be astronauts, firefighters or whatever. I always wanted to be a banking lobbyist. Even at age 4 I would pretend to have off the books backroom meetings with politicians and central bank representatives. But with that cap? No thanks. I’m gonna shift my future to the US where I can lobby to remove environmental protections. That’s where the money is.
You’ll need 500,000 by December if prices keep going up lol
What BS!
The clue is in the article. Lobbyists are there for one thing. To get laws altered or watered down so they become ineffectual to the ones that employed them in the first place. If it was dug into more it is the banks that are the employer. FFFG will get the central bank to change their ways. Never forget what they did. Very few bankers if any spent a night in mount joy.
Banks are cunts, really hoping this web3 business takes off to cut out this parasite of a middle man competely