Extract from IDS Executive Compensation Review 305, July 2006

Pay awards in retail banking maintain steady pace

Recent announcements of record profits by some leading high street banks underline the sector’s importance for both job prospects and the wider health of the economy. This gives pay planning in retail banking particular weight and, with the industry’s annual review cycle virtually completed, we provide a rundown of the latest managerial and professional salary awards in 12 high street banks and building societies.

In the current low inflation climate, salary rises for managers and professionals working for high street banks and building societies have maintained a steady pace over the last year and in response employers appear to be putting more emphasis on bonus arrangements. Included in our round-up are the majority of the high street banks, including Barclays, Lloyds TSB and Royal Bank of Scotland, owners of the NatWest. This article includes tables showing latest median and average pay increases as well as a large table providing details of latest and previous reviews, as well as numbers covered, by named organisation.