While Middle East remuneration packages fell by an average of less than 10%, bankers globally have seen their packages cut by 55%.

The highly acclaimed survey, now in its eighth year, is conducted annually among nearly 4,000 international bankers, including those working in Dubai and Saudi Arabia, and for the first time also covers Islamic Banking to reflect the growing importance of this sector.

Shaun Springer, Chief Executive of Napier Scott Search said, "Four years ago, you would have had difficulty finding sufficient Islamic Banking people to warrant a survey. This sector has grown to such a critical mass with every global, European and Arabic institution involved that it now justifies one."

William Allum, who heads Napier Scott's Middle East practice said, "We are seeing pay scale differentials favouring Islamic Banking because of a shortage of skilled, experienced staff. A managing director in Sharia'a structuring, for example, can expect to receive a combined salary and bonus of Pounds 275,000, whereas a similar post in say Russia would attract Pounds 200,000, a significant different."

Allum added that the main reason Middle East remuneration packages had escaped the severest cuts was because they had been at a lower level, historically, than elsewhere and so needed only moderate adjustment to maintain a competitive edge.

"Although private equity has been hit very hard in all major financial centres, it is noticeable that this sector is holding up well in terms of remuneration in the Middle East, which remains a robust region," he said.

The Napier Scott survey also reveals that the average pay and bonus package for a London banker had plummeted by a staggering 62%, making the Square Mile the lowest paid global financial centre, for the first time in its history.

In addition, the US has regained pole position, after three years as runner-up to London, with Wall Street bankers receiving 40% more than their UK counterparts.

Shaun Springer added, "Our survey shows that there is a 40% differential between what bankers can earn on Wall Street and in London, though one must take into account the 25% devaluation in Sterling."

The survey's overall 'winners' in the pay and bonus stakes were senior private bankers within the top financial institutions (Tier 1), who generally maintained their levels of remuneration from 2008.

Shaun Springer added, "It has come as a great surprise to discover that London has gone from top to bottom in our remuneration survey in just one year. This is encouraging, however, as it illustrates that London is taking the global financial crisis seriously and is responding positively by introducing more conservative remuneration packages."

Springer warned that a continuation of widespread redundancies in the City could have serious consequences for the premier financial centre's future status.

He said, "The City has already lost a great deal of talent in the past 12 months and we must not loose sight of the fact that it took 30 years for it to reach a position of financial supremacy and this status could be undone in a tenth of that time. This is an enormous polarisation between the City and Wall Street, and given the current political climate in the United States, it will come as a very unpleasant surprise to the Obama administration, which is trying to rein in bankers' packages."

Of the various asset classes, because of consistent volatility in the currency markets, Foreign Exchange traders experienced the smallest cuts in remuneration (8%) while structured credit traders were hardest hit, suffering an average fall of 86%.

For further information, please contact:

William Allum

Napier Scott Search

Tel +44 (0) 20 7920 6300

or

Paul Desmond

Tavistock Communications

Tel Tel +44 (0) 20 7920 3150

or

Pollyanna Hutchinson

Tavistock Communications

Tel +44 (0) 20 7920 3150

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