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£380k for Davies as bonus bounces back

FSA chairman Howard Davies saw his salary package increase to £379,740 in the financial year ending April 5, up from £341,014 in the previous year.

Salaries in the FSA&#39s annual report, indicate the UK&#39s chief financial regulator received a pay increase of nearly 12 per cent despite the continuing problems at Equitable Life and difficulties in the split-cap sector.

Managing director John Tiner also enjoyed a bumper pay year, receiving £295,580 in his first year with the regulator.

Last October, it was revealed that Davies had his performance-related bonus slas- hed by £13,900 to £26,100 from £40,000 in what he described as a “fine” for failings related to Equitable Life. This year, his bonus jumped back to £37,800.

The remaining two managing directors at the FSA, Michael Foot and Carol Sergeant, were paid £301,538 and £227,799 respectively.

In comparison, Sir Andrew Turnbull, the head of the civil service, will earn £200,000 when he takes up his post in July while Prime Minister Tony Blair is paid £165,418.

FSA spokesman Robin Gordon Walker says: “The Stock Exchange people get a million quid a year.

“Howard Davies&#39 salary is much lower than what the chairmen of the financial institutions we regulate earn.

“Yes, he got a rise last year but he is not the only one in the UK who got a rise last year.”

Pensions & Investment Management principal Phil Moore says: “It is with grim acceptance that I hear this. Someone is having to pay for these salaries and part of it comes from IFAs. I personally feel that it is too high.”

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