The economic climate that has been going on for the last years has more or less affected everyone. This has created a need to get more knowledge about how our banks work and also how peoples own personal financial situation looks like. When our banks over this last period have compensated their employees with even greater deals of money, reactions has gone to the roof. This discussion has made us interested in the subject, which led to the decision to write an essay about remunerations within banks.

The purpose of this essay is to investigate if our banks remunerations to their employees have any effect on their profit numbers. Does the size of the compensations vary with changes in the market? Do larger compensations contribute to a greater result?

The study will look at Sweden’s four largest banks, Handelsbanken, SEB, Nordea and Swedbank. The bank’s annual reports from the years 2003-2010 will be used to gather the data and the variables that will be used are; number of employees, net profit and total remunerations. The main idée was first to do the research on the years 2006 to 2010 but when that result came the analyze showed a non reliable result which the authors believed may come as a consequence of the economic situation. The authors came to the conclusion that an additional analysis had to be made, now over the years 2003 to 2007.

The final result of the study shows that there is a relation between the variables compensation per employee and result per employee.