The remuneration package for heads of the European supervisory authorities must improve to give them the political clout to do their jobs effectively, says MEP Peter Skinner.
The regulation of financial services across Europe is overseen by three ESAs – the European Securities and Markets Agency, the European Banking Agency and the European Insurance and Occupational Pensions Authority.
They aim to improve coordination between national supervisory authorities such as the FSA and raise standards of national supervision across the EU.
Speaking to Money Marketing, Labour MEP for the South-east Skinner said the authorities’ chairs are currently graded below those they may negotiate with in terms of pay, which could cause problems.
He says: “We have to go back and look at salaries and pay grades. They are currently lower than commissioner level. If they want to face off the head of the European Central Bank, Jean-Claude Trichet, he can look at them and say, on pay grade terms, they cannot ask him to do things.”
Last week the economic and monetary affairs Committee briefly postponed its backing of the heads of the three ESAs.
It said there were too few applications because of uncompetitive pay packages and it had concerns over budgetary pressure affecting the ability of the supervisors to “hit the ground running”.
Skinner says: “The current supervisors are perfectly competent and effective but there has to be an attractive offer to get the very best to rise to the top.”