UPDATE 1-London leads 11 pct jump in bankers earning 1 million euros

By Steve Slater

LONDON, Nov 29 (Reuters) - More than 3,500 bankers in Europeearned 1 million euros ($1.4 million) or more last year after abig jump across the continent and in Britain, which had 12 timesas many high earners as any other country.

Figures from the bloc's banking regulator on Friday showedthat London-based bankers would have easily bust the EuropeanUnion bonus cap rule coming into effect next year. Bonuses forthe highest earners were almost four times fixed pay.

The scale of bankers' bonuses remains a hot topic among politicians and the public. Many blame high pay for therisk-taking that led to the 2008/09 financial crisis and aseries of mis-selling and misconduct scandals.

The European Union is trying to curb excessive pay and hassaid that from 2014 bonuses for "risk-taking" staff cannotexceed annual salary, or twice that if shareholders give theirapproval.

The latest data from the European Banking Authority (EBA)shows that 3,529 bankers in the EU earned at least 1 millioneuros in 2012, up 11 percent in 2011.

They were paid 6.6 billion euros in aggregate, including 5billion in bonuses, representing more than 10 percent of the EUbank industry's after-tax profits in 2012. These bankersrepresent about 0.1 percent of the 3 million people who work inbanks across Europe.

Britain accounted for 2,714 of those top earners, up 11percent on the year before, partly reflecting London's dominantposition as Europe's financial centre and home to majoroperations for banks from the United States, Switzerland andother countries outside the EU.

The data shows that banks in Britain and France inparticular need to adjust pay structures to meet new the rulesbecause variable pay was almost four times fixed pay.

London's top earners in asset management could be hardesthit, as their bonuses are more than five times fixed pay.

At least 10,000 bankers, most of them in London, areexpected to be affected by the new bonus cap. Banks such asBarclays, Deutsche Bank and HSBC are expected to cut bonuses and raise fixed pay to comply withthe new rules.

Any employee earning more than 500,000 euros a year islikely to be affected, and potentially people whose bonus is atleast 75,000 euros and 75 percent of their fixed pay. The EBAsaid on Friday it expects to finalise details next month.

RARE PAY GLIMPSE

The EBA figures, part of data-gathering efforts as the EUfinalises its rules for the bonus cap, offer a rare glimpse intothe pay of bankers across Europe.

Of the British bankers earning more than 1 million euros,2,188 worked in investment banking, 62 were in retail banking,198 were in asset management and 266 were in other areas.

The watchdog said that 212 bankers in Germany earned morethan 1 million euros, up by a quarter from 2011.

There were 177 bankers similarly well rewarded in France, up9 percent, and 109 in Italy, up 14 percent. There were alsosignificant rises in most Nordic countries.

In Spain, which had to bail out its banking sector lastyear, the number earning at least 1 million euros fell by afifth to 100. However, the average remuneration for those 100was 2.2 million euros, higher than Britain and Germany.

Some countries, such as the Czech Republic and Estonia, hadno million euro earners, while Poland had seven.

Ireland, which was almost bankrupted by its banking crisis,had 16 in the top bracket, down from 21 a year earlier. Cyprushad three and Greece one.

The figures include high earners from employees based ineach country, rather than the domicile of the bank, so the UKfigures include high earners from international lenders such asGoldman Sachs and JPMorgan.