Financial advisers have reacted angrily to the news that FSA staff were paid nearly £22m in bonuses last year, with three board members getting bonuses totalling £278,000.
Chief executive Hector Sants has given his £108,000 bonus to charity while managing directors Jon Pain and Sally Dewar agreed to cap their bonuses at 20 per cent, less than the 35 per cent they may have been entitled to.
The FSA’s annual report, published last week, shows managing director of risk Sally Dewar saw her total remuneration increase by 32 per cent, from £435,179 to £576,233. She earned £400,000, plus a bonus of £85,000 and other benefits totalling £91,233.
Retail markets managing director Jon Pain saw his total pay nearly double from £312,289 to £599,564, including an £85,000 bonus and £79,564 in other benefits. Part of Pain’s increase reflects the fact that he was only in the role for some of the previous year.
Outgoing chief executive Hector Sants saw a 19 per cent increase in total pay, from £623,170 to £742,011, including a bonus of £108,000 and other benefits of £134,011.
Chairman Adair Turner earned a salary of £416,000 after forgoing a salary increase he was awarded in 2009. As chairman, he is ineligible for a bonus and earned a total of £482,442, including £66,442 of other benefits. This compared with £246,546 the previous year, again reflecting the fact that Turner was only in his position for part of the previous year.
The total paid out in staff incentive awards, £21,998,813 was an 11.6 per cent increase on the previous year’s figure of £19.7m and was 13.8 per cent of the total wage bill.
A selection of advisers’ comments from our website.
Have your say at www.moneymarketing.co.uk
Try finding this story in the national newspapers. It needs to cover a wider audience than the trade press. We all know of the FSA failings but for the wider public there is very little understanding of how they have failed in so many aspects of there role and yet staff get paid sums at a level that is beyond justification.
I would like to see the qualifications these paid clerks have and what criteria need to met to be entitled to a bonus. I wish I could set my own bonus scheme, irrespective of performance and pass on the cost to my clients.
It is above the law, so why should it be bound by any sense of reality or decency? Such a code of “unethical” conduct will therefore underpin a £22M bonus for a group that has failed every regulatory test put before it at a time when the Government is demanding an end to big state, small citizen.
If a nurse, doctor, IFA, teacher or most other professions you may wish to name, does a good job, they don’t even usually get even a pat on the back, let alone a bonus. They are remunerated to do the job successfully, no more, no less. The regulator regulates itself and makes up its own remuneration rules, it seems.
Brokers struggling to survive in this culled-down market, lenders restrictions preventing thousands of people getting a mortgage, what a fabulous job the FSA has done.
Instead of paying their staff such huge bonuses and trying to justify it, why doesn’t the FSA turn its attention to innocent victims of Keydata and sort out the debacle? Putting that £22m towards compensation for Keydata victims would show the nation and IFA’s that they are serious about TCF instead of squabbling about who is and who is not entitled to get their money back.
If there is any justice, this has got to be the last nail in the coffin. No wonder they try to convince us they have done a good job, trouble is we know different. I hope this new government gets a grip of them, better still just get rid and make any replacement accountable.
Why do we allow this to go on? They will want their annual fees again soon so why don’t we all say no and hold them back for a year. Let us see how they get on without our money to fund them.