Incoming Bank of England governor Mark Carney defended his £874,000 pay package when he came under questioning from MPs.
Giving evidence to the Treasury select committee last week ahead of his appointment on 1 July, Carney refused to say if he would have accepted a lower salary.
Carney’s deal consists of £480,000 basic salary, £250,000 housing allowance and £144,000 annual cash allowance in lieu of a pension.
He said: “The combination of housing allowance and salary is broadly equivalent to the pay and pension of the outgoing FSA chief executive Hector Sants.”
Carney also said his pay and pension will be equivalent to the current governor Sir Mervyn King, excluding the housing allowance.
He said: “The offer of a housing allowance is consistent with the arrangement for many international executives who move for a period to this country or others. In order to equalise their living standards from where they are leaving to where they arrive.
“Unfortunately I am moving from one of the least expensive capital cities in the world, Ottawa, to one of the more expensive capital cities in the world, London.”
Your Mortgage Decisions director Dominik Lipnicki says: “It is worth paying whatever it takes to get the best person for the job.”