Europe’s top banks have paid out more than €1.1 billion in severance to senior staff since 2018, underscoring the sweeping restructuring efforts the industry has undertaken in response to shifting market dynamics and profitability pressures, according to a Financial Times analysis.
The severance payouts targeted so-called “material risk takers” — senior bankers whose roles can significantly impact a financial institution’s risk profile. Across seven major European lenders, 2,100 of these top-tier staff received a combined €1.13 billion in severance between 2018 and 2024 — an average of approximately €540,000 per individual.
The Financial Times review of regulatory filings and company accounts shows that Deutsche Bank, HSBC, and Santander were responsible for the bulk of the payouts, collectively accounting for nearly €850 million. Société Générale, BNP Paribas, Barclays, and UBS contributed a further €275 million.
Among the banks, Santander recorded the highest average severance package at €780,000 per material risk taker, followed closely by Société Générale (€737,000) and HSBC (€678,000). The single largest payout went to a Santander executive in 2021, totaling €11.2 million. Deutsche Bank also made two notable payments of €11 million in 2018 and 2019.
“These exit packages are not easy to come by,” one senior financial services recruiter told the FT. “Some long-standing senior staff want out, but the terms don’t always work in their favor. That said, severance offers today are far more generous than they were a decade ago.”
Deutsche Bank has been the most aggressive among its peers, slashing 685 material risk takers — 70% more than HSBC, which cut 400 — as part of a broader transformation under CEO Christian Sewing. Deutsche famously exited its equities trading business in 2019 and initially aimed to cut 18,000 jobs by 2022. Though headcount temporarily fell to 83,000, it has since rebounded to nearly 90,000 after a three-year hiring spree.
HSBC has also undergone multiple rounds of restructuring. Former CEO Noel Quinn planned to cut 35,000 jobs and $4.5 billion in annual costs. His successor, Georges Elhedery, has since introduced a new east-west operational split and announced the closure of major segments of HSBC’s investment banking business in the UK, US, and Europe.
Other banks have implemented smaller, more routine staff reductions. Barclays, for example, is currently cutting 200 investment banking jobs — roughly in line with last year’s numbers — according to a source familiar with the matter.
UBS, despite offering the lowest senior-level severance among the seven banks examined, incurred a significant overall restructuring cost last year. The Swiss lender spent $735 million (€643.7 million) in total group severance as it absorbed rival Credit Suisse, affecting 5,700 employees and averaging $129,000 per person.
The findings highlight how European banks continue to lean on restructuring and senior-level cost reductions as they adapt to regulatory changes, digital transformation, and an increasingly fragmented global economy.
