Incoming Bank of England governor Mark Carney will receive an annual accommodation allowance of £250,000 as well as a salary of £480,000 when he takes up his role in July.
Carney, who is currently the governor of the Bank of Canada, will also receive a cash allowance in lieu of pension of 30 per cent of his salary, meaning his annual package will total £874,000.
His basic salary is 57 per cent more than the £305,000 the current governor Mervyn King receives.
Carney will serve a reduced term as Governor. Instead of the full eight years governors have previously been required to serve, Carney’s term will run to just five years.
Prolific Mortgage Finance managing director Lea Karasavvas says: “Whilst it will raise many eyebrows in the industry I am sure, if he can back up this price tag with the required results and bring an element of stability back to a fragile economy, then the differential in salary is almost irrelevant.”