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51% Pay rise for FSCS board

The Financial Services Compensation Scheme board of directors received a 51 per cent pay rise this year.

The FSCS annual report, published this week, shows that the board were paid a total of £163;638,000 compared with £423,000 in 2006/07.

Chief executive Loretta Minghella received a 25 per cent pay rise for the year end- ing March 31, comprising £163;210,000 plus a £27,000 bonus. Her salary in 2006/07 was £189,118, with no bonus.

The FSA awarded non-executive directors a bonus of £20,000 this year, up from £17,000 the previous year.

The rises come despite payouts falling to £84m in 2007/08 from almost £155m in 2006/07. An FSCS spokesman says: “The apparent increase in the chief executive’s remuneration relates to a number of changes in her terms and conditions. One of the most significant is that in the previous financial years, the chief executive’s role was not included in the staff bonus scheme.”

Paladin Financial Services managing director Tim Purdon says: “The chief executive’s pay rise may be linked to performance and therefore justified but how do they justify a 51 per cent increase for the board of directors at a time when the Government has asked people to be responsible in the pay rises that they are awarding themselves?”

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