Annual staff turnover at the FSA has more than doubled over the past year, from 4.9 per cent in 2009/10 to 10.4 per cent in 2010/11.
The regulator has published its staff turnover figures as part of its annual report for 2010/11, which measures the progress made against its business plan published last March, and covers the year from April 1, 2010 to March 31, 2011.
The FSA says it has increased staff levels in line with its more intrusive approach to supervision, and as a result staff turnover has varied.
The FSA says: “Our turnover levels are manageable; while our turnover went down considerably during the financial crisis it is now starting to return to the level we would expect as recruitment picks up across the sector.”
The regulator paid out £24.8m in annual staff incentive rewards in 2010/11, the equivalent of 13.8 per cent of the FSA’s total salary bill. In 2009/10 the FSA paid out £21.9m in annual incentive rewards, reflecting a lower number of staff.
FSA chief executive Hector Sants was the highest paid director over the last year, earning £806,810 compared to £773,067 last year.
Sants’ remuneration includes a £500,000 basic salary, £115,000 in performance-related bonuses, £131,810 for car expenses and other flexible benefits, and £60,000 payment in lieu of a pension contribution.
FSA chairman Lord Adair Turner accepted a £10,000 increase in his salary to £426,000, after foregoing an increase to £435,000 in April 2009.
The report also reveals that the amount raised in fines during the year has gone up by almost a third, from £33.5m in 2009/10 to £91.2m during 2010/11. The FSA says this will be used to reduce the amounts payable by relevant fee blocks in future.
Enforcement costs are down from £68.4m to £57.9m, including the costs of external accountants and lawyers, which have gone up from £7.3m to £8.8m.
Overall the FSA spent £450.8m during the year, compared to its budgeted spend of £458m. It raised £464.2m in fees from levy payers, compared to £435.5m raised for the previous year.