Money Advice Service chief executive Tony Hobman says the importance of the MAS’s work is enough to justify his £350,000 remuneration package.
According to a written answer to a parliamentary question to Treasury financial secretary Mark Hoban, Hobman’s total package for 2010-11 was £349,341, making him the MAS’s highest paid director.
Asked about the level of his pay at the business, innovation and skills select committee this morning, Hobman said his actual salary was £250,000 with the rest being made up in benefits.
He said: “I believe we have been tasked with something, which if as we intend, we get right will make a hugely significant difference to millions of people’s lives. If we are successful all of the costs associated with that will be considered to be value for money.”
When BIS Committee chairman and Labour MP Adrian Bailey suggested that even at £250,000 it is a salary of over £100,000 more than the Prime Minister for the head of a relatively small organisation, Hobman replied: “Then I feel hugely incentivised to do it.”
In November, MM revealed MAS put up to half of its staff on consultation after a review of its products, services and delivery channels. Questioned by committee member and Conservative MP Nadhim Zahawi over the restructuring within the MAS, Hobman said the net change in staffing would be from 140 staff to 80. He said he was “absolutely” confident quality of service would be maintained.
He said: “We will measure success by the use and reach of our tools and the underlying change in people’s capabilities.”