By 2026, the remuneration of bank executives will no longer be based solely on seniority, job title or the size of the institution. Banks are now adopting more selective remuneration approaches, directly linked to an individual’s ability to generate value, secure revenue and thrive in complex environments.
This trend reflects a profound transformation of the banking sector. Against a backdrop of increased regulatory pressure, narrowing margins in certain areas and intensifying competition between institutions, remuneration policies are becoming more strategic, more tailored to the individual and, above all, more focused on performance that can be effectively leveraged.
1) Wages are becoming increasingly polarised
The banking sector is seeing an increasing polarisation in pay. The gap is widening between those whose roles have a direct impact on business growth and those in more standardised positions.
Companies particularly value candidates with strong sales skills, rare technical expertise or the ability to build loyalty among key clients. Conversely, certain mid-level or highly procedural roles are seeing more limited pay rises, particularly as a result of automation and internal cost-cutting measures.
This development is creating a multi-tiered banking market, where the value of a profile now depends more on its positioning than on seniority alone.
2) Bank executives are assessed on their actual profitability
By 2026, banks are looking to measure the economic contribution of each banking executive much more accurately.
This approach is particularly evident in private banking and wealth management, where remuneration increasingly depends on the quality of the revenue generated, the stability of assets under management, the ability to drive business growth, and effective risk management. The market rewards not so much mere presence as the ability to deliver a measurable and sustainable impact.
This trend is radically changing career paths. Candidates who can demonstrate a clear contribution to a bank’s growth enjoy significantly greater bargaining power, particularly in financial centres such as Geneva, Luxembourg and London.
3) Remuneration for bank executives is no longer limited to a fixed salary
Finally, changes in pay can also be seen in the structure of pay.
Packages are becoming more sophisticated and incorporate a wider range of variables, mechanisms to retain existing clients, deferred remuneration, and benefits linked to international mobility. In certain sectors, particularly private banking, total remuneration is becoming a tool for aligning individual performance with the institution’s growth objectives.
This trend reflects the banks’ desire to better identify the profiles that genuinely create value, whilst maintaining strict control over their fixed costs.
Changes in the remuneration of bank executives reflect a wider transformation of the financial sector. Banks no longer simply reward a specific role or hierarchical level; they reward the ability to create value in a complex, regulated and highly competitive environment.
