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Davies loses £13k bonus but still earns £316k

FSA chairman Sir Howard Davies has had a bonus cut by £13,900 as a result of the regulator&#39s poor performance in the handling of the collapse of Equitable Life.

Davies, who still received a pay packet of £316,100 in 2000, saw his bonus cut from £40,000 to £26,100, because of Equitable. However, his basic pay jumped £15,000 to £290,000 in 2000 from £275,000 the previous year.

Speaking on Radio 4&#39s Moneybox programme, Davies said: “I was paid a lower amount in 2000 in recognition by the board of the problems at Equitable.”

Davies&#39 bonus is calculated on achievement of specific objectives, personal performance through the year and the impact of his work on the reputation and standing of the FSA.

Two FSA managing directors, Michael Foot and Philip Thorpe, who has since left, had their bonuses cut by £8,850.

An FSA spokesman says: “As the Baird report says, with hindsight, things could have been done better. This is not an admission of regulatory failure.”

Norwest Consultants principal Harry Katz says: “It is a very responsible job. If things go wrong there should be a sanction.”

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