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Clive Briault given more than £500,000 in compensation after leaving FSA

Ex-FSA retail markets managing director Clive Briault received £528,952 in compensation for loss of office after he stepped down from his role following the Northern Rock debacle.

It was reported that Briault, who left the regulator by “mutual consent” in April, would receive a £380,000 payout. But the FSA’s Annual Report, released today, shows that figure to be much higher.

As part of his total salary, Briault received a performance related bonus of £30,000.

Outgoing chairman Callum McCarthy’s salary for 2008 has risen about 10 per cent to £480,553, from £433,565 in 2007. As usual, McCarthy declined to take up his bonuses.

Hector Sants’ total pay packet increased to £661,948 this year following his promotion to chief executive. He received a bonus of £114,000.

Sants earned £482,829 in 2007 as managing director of wholesale and institutional markets.

In his chairman’s statement McCarthy says: “The last year has presented great difficulties for the financial services industry, its customers and for the FSA. A long overdue and much-needed adjustment of the pricing of risk materialised abruptly, with severe and continuing consequences.

“We should all draw lessons from what has been a sobering experience. Banks need to improve their risk management, stress testing and disclosure practices. Investors need to recognise that buying assets whose risk they do not understand on the basis of a credit rating is profoundly unwise. Rating agencies themselves, which perform an essential task, need to change their practices to bring back confidence in ratings. And those responsible for financial regulation and central banks around the world need to examine their own policies and practices – something to which the FSA has demonstrated its commitment.”

FSA chief executive Hector Sants adds: “I am determined that the FSA will not be defined by the Northern Rock incident, but rather by our response to it. We have demonstrated our willingness to examine ourselves critically and to learn lessons from our mistakes – a quality we believe is central to giving the financial services industry and consumers confidence in the FSA.”

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