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FSA defends internal bonuses

The FSA had defended the decision to pay its staff bonuses, saying that performance related pay is necessary to ensure employees are incentivised to perform to targets.

Responding to a question at the FSA annual public meeting in London today, FSA chief executive Hector Sants said where staff at the regulator have performed well, they deserve to be rewarded.

He said: “We have a series of individual performance targets set at the beginning of the year and if people meet or exceed them they will receive an element of variable pay, a bonus.

“It is important to have individual incentive bonuses to ensure people are incentivised to perform to targets.”

FSA chairman Adair Turner added: “We needed to draw a distinction between 10-15 per cent level of bonus that is performance related and the bonuses in the City trading rooms which can be 100-200 per cent of salary.

“Abolishing bonuses altogether would be to the detriment of the industry.”

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Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]

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