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FSA pays out £22m in staff bonuses

Three FSA board members were paid bonuses totalling £278,000, whilst FSA staff were paid a total of £21,998,813 in annual incentive awards for 2009/10.

Outgoing chief executive Hector Sants (pictured) has given his £108,000 bonus to charity whilst 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 today, shows that risk managing director Sally Dewar saw her total remuneration increase 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 increase 92 per cent, from £312,289 to £599,564, including an £85,000 bonus and £79,564 in other benefits. Pain’s large increase reflects the fact he was only in the role for some of the previous year.

Sants saw an 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 received 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 to £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 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.


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There are 65 comments at the moment, we would love to hear your opinion too.

  1. I wondered what would be the first item from the FSA’s annual report to be reported by Money Marketing – i’ve just won a bet with myself!

  2. Ahh! That’s what ‘Austerity’ means! Funny though, they didn’t say it meant that at my normal comprehensive school! They are having a laugh at the expense of this entire country and taking the p*ss out of every taxpayer in the process! We would know none of this in the absence of the Freedom of Information Act however.

  3. Keith McIntosh 10th June 2010 at 2:31 pm

    £22m?? What a complete and utter scandal. Is this what hikes in broker/adviser fees are being used to fund. They are a laughing stock and a joke….although unfortunately most do not fine them funny.

  4. Bonuses for hitting agreed targets……sounds a bit like commissions to me

  5. Not surprised at this really. It’s just another example of Labour wastage. No doubt these bonuses where firmly embedded in the said employees contracts long before the election was called.

    In a way abolishing the FSA and making everyone apply for jobs with the B of E should ensure that bonuses at these levels are never paid again. How can the FSA comment on any banks policy for handing out bonuses. Its hypocrisy on a grand scale if you ask me.

  6. Blood money. All at the top are vultures!!!

  7. Same old same old. Absolute joke.

  8. I find it criminal that an organisation that failed to meet one of it’s primary objectives of maintaining confidence in the UK’s Finacial Institutions, can reward itself for a job not well done! Once again it is the civil service mentality of it is only the tax payers money so lets waste it!

  9. Paul Standerwick 10th June 2010 at 2:37 pm


  10. How come an organisation that has failed so badly pays out bonuses?
    And why did Hector Sants not have the decency to refuse his bonus rather than taking it and sending it to a charity? IFAs contibute to the salaries and bonuses that these failures get. As a contributor I would much rather the bonus not to have been paid, thus saving £108,000.

  11. We have been asked to pay them yet another extra lump sum this year ontop of our normal levy as they have stated they are unable to cover costs incurred. Yet they seem to have money to pay BONUSES not pay their staff but also BONUSES, they are having a laugh

  12. Fees and fines, thats what the FSA is all about, i bet they are quite happy for the banks to carry on making huge c**k ups in our industry so they can charge them. The poor IFA with his lowly fees and hardly any fines doesn’t pay bonuses so whay have us!!

  13. How is the bonus calculated? Maybe this is a % of the fines received?
    Nice work if you can get it!

  14. It is amazing how so many untalented people are being paid so much .The FSA is a total disgrace they are strangling good advice .Do you think they give a dam for the 1000 IFA’s who are waiting to be authorised and who faciing financial problems

    I beg that the new Goverment sort this mess out quickly

  15. David Cameron, you want the public to say where cuts and savings can be made – let’s hope you read this page and many others of a similar ilk!
    I’m sure by the way, that refunds to all IFA’s will follow these bonus payouts because somehow or other I guess, they must have made a profit!

  16. What a lot of gangsters! I’d like to see the qualification these overpaid clerks have and what criteria needs to met to be entitled to a bonus. Wish I could set my own bonus scheme, irrespective of performance and pass on cost to my clients. But this wouldn’t be TCF -no wonder the country is in the state it’s in – CORRUPTION is not too strong a word for them and their ilk in Westminister.

  17. It’s 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. Surely, this but be the death throes of a Leviathan At Large?

    Andrew Tyrie has been appointed Chair of the Treasury Select Committee. The FSA, is part of the BIG STATE small citizen problem and with luck may have some issues to answer for especially as Andrew wrote the authorative The Leviathan At Large. Here is a more up to date link to The Leviathan At Large, written in part by Andrew:

    The truth is to freedom what oxygen is to fire. The more this information is used and passed on the greater the fire will burn! Why not take this document as a benchmark in your own representations against this Leviathan?

  18. OK, enough’s enough…

    It’s time every IFA in this country now stood up to collectively make a request under the Freedom of Information Act, a complete written justification for these bonuses….

    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….we should request written explanations – who decides who should get the bonuses? Who decides the level of the bonus? What is the bonus based on? ( it can’t be performance-related, since they’d have to refund the basic salaries if that were the case)

    If I’m missing something here, I deferentially invite the FSA to explain precisely what it is I’m missing…

    So, instead of now just making our weekly comments, who’s for putting together a collective request for information under the Act, specifically requesting the explanations based on the above questions….? email me at….

  19. michelle ashworth 10th June 2010 at 2:54 pm

    absolutely laughable!! brokers struggling to survive in this culled down market, lenders restrictions preventing thousands of people getting a mortgage, what a fab job the FSA have done !

  20. Imbeciles, who only have one aim and that is to see how many snouts can they fit into a seemingly bottomless trough. They should hang their heads in shame.

  21. Instead of paying their staff such huge bonuses and trying to justify it, why dont the FSA turn their attention to innocent victims of Keydata and sort out the debacle? Surely putting that £22 million towards compensation for Keydata victims etc would show the nation and IFA’s that they are serious about TCF instead of squabling about who is and who isnt entitled to getting their money back!

  22. Darren and anonymouse (squeek up) it is not the tax payers money, it is ours the industry, paid for by hard pressed IFA’s struggling under a mountain of red tape!!

    Sants and senior staff should be hung drawn and quartered! (not that I am old fashioned or anything!

  23. Incompetent Regulators Awards Team 10th June 2010 at 3:06 pm

    Digging their own grave comes to mind.

    Just keep digging Quango boys!

  24. On the basis that there are supposedly 3700 employees, thats an average of 6K per employee…

    Why a bonus…?? …..this is not sales…. surely the incentive to work there is that you have a very well paid job in the first place..

    Ah well make hay whilst the sun shines as there wont be that many contributors left after 2012…

  25. Out with the old in with the new! 10th June 2010 at 3:08 pm

    Our democracy is being affected by former politicians who have vested in a member of the executive unaccoutable powers with an authority to rob those they regulate.

    Sants won’t refuse his bonus because he and the rest of these jobsworths are history! Want to know everything that is wrong with a UK in decline just go see the FSA. A regulator that destroys what is good (IFA) and supports and promotes what is bad (banks). A regulator that fails every regulatory task and yet pays itself £22m in bonus – IT MAKES ME FELL SICK!

  26. Is it any surprise that our fees are ever increasing!

    Being “shareholders” of the FSA, then surely we are due a dividend!

  27. Ultimately, those bonuses are funded by client money. You might argue that it comes from the pockets of IFAs, but beyond a certain limit we have to increase our fees to make sure that food can be put on the table and hence the client pays.

    I can’t afford to replace my ageing car or go on holiday, but the people who regulate me received bonuses larger than my take home pay in many cases.

    An unaccountable body of people benefit indirectly from client money. In some cases that money will have been obtained by dishonest practice, bad advice and misguided thinking. These circumstances should have been regulated, but were not.

    In other (the vast majority of) cases, clients pay a premium to these people to regulate business that does not require regulation, but they take the money to pay themselves regardless.

    So either way they are living from immoral earnings. There’s another word for that.

  28. Brian Harrison 10th June 2010 at 3:22 pm

    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.

  29. If you forget the fact this the FSA, how can a public sector employee get a 32% increase in her annual salary and if the full bonus had been paid it would have been over 50%.

    These are unbelievable salary increases, even if the economy was booming.

  30. Try finding this story in the National newspapers tomorrow. 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.

  31. And this is the organisation that is reviewing excesses in the IFA sector – they are a disgrace!!

  32. I have no objection to the FSA paying staff bonuses as many firms do this to reward excellent performance.

    There are some issues, however, that needs to be addressed:

    a) the justification for large percentage rises that our out of step with the rest of the UK bearing in mind the extreme financial position we are all in
    b) the fact that you cannot ignore the source of funding which is the customer. Any other business would not be able to increase its income merely by needing more to pay staff bonuses and pay rises (budgeted or not) at a time when the hand that feeds it is having to make cuts to survive.
    c) the FSA need to demonstrate that they have found ways to make cuts as well to show some proportion
    d) what would they say if the banks were paying this percentage of bonus to their top people at the current time

    In a time where jobs are harder to come by and the public sector have better pay and conditions then the private sector (research now shows average public sector pay as higher than private plus more secure and better pensions) the argument for paying higher salaries to attract and retain staff no longer stands. There is a need for a reality check here.

    I do not think for one minute that disbanding the FSA will solve these problems and the cost to the industry will be greater than staying as it is. The key is for the FSA to demonstrate greater performance and cost control.

    If it were applying for authorisation as a high impact firm I doubt its business plan would pass the test.

  33. Ivan McCullough 10th June 2010 at 3:40 pm

    Ivan McCullough
    Why oh Why do we allow this to go on? They will want there annual fee’s again soon so why dont we all say no and hold them back for a year. Lets see how they get on without our money to fund them. Im sure the French would not put up with this so why do we keep rolling over?

  34. Julian Stevens 10th June 2010 at 3:40 pm

    The FSA people will just read these comments and laugh because they know they’re untouchable, unaccountable and not bound by any reasonable standards of ethics, morality or decency. A Statutory Code of Practice For Regulators exists but the FSA ignores it and nobody holds it to account.

    The FSA is a gravy train for the fortunate few and the industry is treated as an inexhaustible cash cow to fund it all. And for just what is Adair Turner being paid hundreds of thousands of pounds a year for? To attend various dinners and make a few speeches demanding even more staff, even more money and even more power.

    Only Parliament can sort this out. Write to your MP.

  35. all they need is a gun and a rope and hopefully they will just finish themselves off

  36. our pain their gain…..
    this organisation is an absolutely rotting corpse

  37. “… and the FSA fiddled whilst the whole financial sector and the country burned” Please will somebody tell the media at large about this total disgrace. They are all having a laugh at our expense and didn’t I hear someone say that this whole nonesense would be stopped now that we have responsible government?

  38. Pissed Off IFA 10th June 2010 at 3:50 pm

    Who is going to regulate the FSA, that’s what I want to know? This is a disgrace!!!


  40. GEOFF BUCKINGHAM 10th June 2010 at 3:55 pm

    In response to some of the above, it is not taxpayers money that is these guys are gorging on. It is our money!!!!

  41. Hold on… who was supposed to be monitoring the banks!!! they have failed themselves and the people of this country and have the cheek to make a fortune out of incompetancy. We are all going to be paying for this negligence for many years to come, whilst these moneygrabbers are sipping champagne long into their retirement. FSA must go and now.

  42. Nigel Williams 10th June 2010 at 4:09 pm

    Why has Sants been given a bonus after catastophic failiure of the full/part nationalised banks and then not give it back to the FSA to reduce fees is beyond me – how can this be Treating His Customers Fairly….US!!

    The Solicitors Regulation Authority on their website adhere to the following rules, which are that the Fees fair to fee payers
    3.ensure a predictable income to meet the cost of regulation stable—charges should not vary considerably year on year (no additional levies)

    Why are WE allowing this to continue, allowing this to damage our profession and I haven’t even started on RDR regulation incompetence. 25 years in the industry – TIME TO LEAVE!

  43. The donkeys are at the trough again. Someone please tell me what it is that the FSA sells or markets that generates a bonus or commission payment? I’d love to attend a seminar held by the top salesmen at the FSA so that I too can learn how to earn in excess of £500,000 and almost double my net income year on year. These guys must be exceptionally good salesmen. It’s only right that we should celebrate their fantastic successes and pay homeage to their superior sales abilty and ofcourse learn their secrets.
    These greedy donkeys aren’t that stupid are they? Rub shoulders in the right circles and get guranteed mega bucks for failing miserably. Some donkeys just have no shame. They forget that they are lavishing themselves with fees paid by advisers. I think I should now start looking for a job or business that pays huge commissions for selling nothing or for creating no new wealth.

  44. Although I agree with the sentiments of Anonymous at 2:37, perhaps I could correct a couple of points. Firstly the FSA is not part of the civil Service and secondly, it is not funded by the tax payer but instead by the regulated community i.e. you. Having said that the mentality is probably the same!!

  45. No-one has mentioned the chairty the bonus went to; is it the Christmas party fund?

  46. How disgusting. While my self-employed income has gone down substantially over the past 2 years, whilst working even harder to meet client expectations, they stick two fingers up at those who pay their wages.
    Any vacancies?

  47. OMG.
    I wonder if the head of authorisations got a good bonus as the service from that department is just rank!

    The average number of weeks it takes the FSA to decide whether to authorise a company to do financial services work jumped 71% in the last year alone, up from 11.4 weeks in Q1 2009 to 19.5 weeks Q1 2010. Six to eight weeks to appoint a case officer: very impressive.

    Before the credit crunch began, firms only had to wait an average of 7.5 weeks – Q1 2007.
    Still they are obviously much more thorough than a year ago.
    The FSA needs to come clean on why it is taking longer and longer to authorise financial services firms. Are they implying that they were not checking new applicants properly a year ago or are they just dragging their heels?.

  48. Great comments jut to
    point out the FSA is a shining example
    of success under the labour government a well marketed organisation which quite frankly does nothing but cuts down trees to write non sense on. I say non sense because like all labour type quangos along with public sector outfits they spend more time writing impractical
    theories on paper than actually understanding what’s happening on the shop floor. I like to describe labours reign as a Hollywood movie set… Looks great from the outside look at the foundations and behind the ideas and it’s simply shoddy wood held up with glue! People are worried about loosing jobs and the FSA (Ltd company) is increasing jobs it’s a farce.

  49. I have just noticed that page 83 of the report states the FSA made no charitable donations for 2009/10. It must be the crimbo do the bonus went to!

  50. Michael in Spain 10th June 2010 at 4:50 pm

    Here we go again, as said earlier, they allow “salesmen” to run and ruin the UK Banks. With, I might add, the last PM and the one before, Bank of England managers, while hard earned pension funds are damaged beyond repair.

    Here, in Spain, the socialist government and Bank of Spain watched chaos rule too.

  51. Another monster out of control and answerable to no one! “and so the FSA fiddles while the country and the financial sector burns”. Didn’t we hear something like that before? So what happens now that we have responsible government? Don’t hold your breath!



  53. I can see why you lot are behaving like rabid dogs, chewing every morsel the pinks throw at you.

    If you concentrate on the job at hand the time is right to change things.

    “The only guide to man is his conscience; the only shield to his memory is the rectitude and sincerity of his actions. It is very imprudent to walk through life without this shield, because we are so often mocked by the failure of our hopes and the upsetting of our calculations; but with this shield, however the fates may play, we march always in the ranks of honour.”
    Winston Churchill

    “Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.”
    Winston Churchill

    “Never give in, never give in, never; never; never; never – in nothing, great or small, large or petty – never give in except to convictions of honour and good sense”
    Winston Churchill

    Who is ‘FSA supporter’? is it Brian?

  54. OKI, you may be thinking that he has not made any profit from giving to charity – what about the impact to his personal tax position and which charity – one he runs himself??? Far better to NOT TAKE THE MONEY and save tax payers money – YES WE DO HAVE QUITE A BIG GAP IN THE ECONOMY Hector – or did you miss this one as well as all the other problems in the market?!

  55. I have taken time to read all 51 readers’ comments before mine and failed to spot one single comment that approves the FSA’s action.

    If there is such a thing as the law of averages, then the only possibilities would be either that the whole industry is jealous of the FSA or they are truly a farce organisation.

  56. Pages and pages and pages of:
    ‘This has to stop….’
    ‘What a disgrace…..’
    ‘Get rid of them now….’
    ‘Snouts in the trough….’
    And what are you all really going to do about it? Sod all, that’s what. You all want someone else to do it for you. Moaning on sites like this one will get you nowhere. Get it together and put up a collective fight or stop the whining and bleating. If you do nothing, you deserve nothing.

  57. Incompetent Regulators Awards Team 11th June 2010 at 9:38 am

    Nothing much can be done I’m afraid as this is legalised Mafia. The only difference is at least you know where you stand with the Mafia and it has some morals despite being a violent organisation, but at least the rules are clear.

    The F-Pack is a legalised Mafia pretending to do useful to the public but with greedy donkeys (as mentioned in one post) at the helm.

    Apologies to donkeys!

  58. Our comments show that as a community we are wholeheartedly disapproving the bonuses paid.
    It really isn’t fair that we have seen our own incomes fall so far. Do any IFAs earn in excess of half a million a year in these times of treating customers fairly?
    How can salaries that large be justified when the Prime Minister receives just over £200k.
    The whole situation is a complete joke, paid for by us.

  59. Charity – claiming the tax relief brings in £32,000.

    Is the Charity Christian Aid ? by any chance a certain person (ex FSCS) now heads this at a huge salary and no doubt a bonus if she brings in money.

  60. Our clients pay these bonuses.

    The FSA are a regulator. If somebody gives bad advice and earns commission, the fee they receive from that advice is undeserved.

    If they receive a levy from a fee earned from good advice, they were not needed in the first place.

    Either way, the FSA haven’t earned their money in any way shape or form, so I think it is only right that they also receive a bonus when I can’t afford to replace my car or take the family on holiday this year, some clients (not ours luckily) have lost money after Keydata, Cru and countless other failings and levies increase over and above inflation.

  61. Ewart Matthias 11th June 2010 at 4:36 pm

    Ah well you see they have to pay these high bonuses to get the right calibre of worker, you know just like with the banks!!

  62. dear, oh dear, oh dear. How can they be so crass and insensitive to the industry that they are supposed to monitor and to the plight of the country as a whole.
    I think I would rather see the Mafia in control as at least then I would know what I am paying protection money for rather than the shower we have in now. WHO CAN JUSTIFY a pay rise of any sort in this economic climate let alone 92%. FSA you really are a pointless and pathetic excuse for a regulator. I will try to keep in mind pay unto Ceasor that what is Ceasors’. I dont like it any more than anybody else and therefore I choose to treat them with disdain and it WILLbe discussed at my forthcoming FSA visit whether they like it or not!!!!

  63. Who on earth devises and agrees these packages? Does no-one in government outside the FSA itself ever look at these salaries (and those of heads of other quangos) and see that they are grossly exaggerated and that bonuses are given too freely? These people do not have to be rewarded as if they are Goldman Sachs directors. Don’t tell us that outrageous rewards have to be paid to get top people. Good people can be obtained for a fraction of thepackages they are paying themselves. They are obscene to the average-earning tax-paying community in the financial services industry and beyond who fund them.

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