Brexit 'could mean big pay cut if British bankers relocate'
British bankers would be forced to take a hefty pay cut if they decided to relocate to Paris or Frankfurt following a Brexit vote, research has found.
Banking associates in the City could see their pay trimmed by up to 30% if they moved to Germany's financial centre or the French capital, while for managing directors the gap widens to up to 80%, according to salary benchmarking website Emolument.com.
The study, which analysed 8,065 salaries for front office banking across the three cities, showed that on average associates in London earned £100,000, while their counterparts in Frankfurt pocketed £71,000 and in Paris £70,000.
But it also revealed that - even after a substantial salary cut - British bankers would still be financially better off with a move to Frankfurt because the cost of living is 60% cheaper than London.
Alice Leguay, co-founder of Emolument.com, said: "If Brexit were to occur, some banks have already announced they would be looking to relocate some of their front office activities to continental offices, such as Goldman Sachs to Paris.
"Until now, prestigious banking jobs were usually to be found in London. An attractive set of opportunities on the continent could, however, give London bankers cause to leave the UK - look out for a shift in high-end property prices in Zone 1."
A number of global banks have warned that British jobs could be moved overseas if the UK votes to leave the European Union on Thursday.
Banking giant HSBC said in February that it could transfer around 1,000 jobs from London to Paris in the event of Brexit.
Chief executive Stuart Gulliver said the move would depend on the terms of a British exit, including whether the UK could still access the financial services ''passporting'' regime allowing member states to trade across national borders.
JP Morgan chief executive Jamie Dimon has also said the consequences of a British withdrawal could see the global banking giant move some jobs to Europe, impacting on its 16,000 staff in locations in Basingstoke, Bournemouth, Edinburgh, Glasgow, London and Swindon.