Directors at the Money Advice Service received a total pay package of £963,000 over the last year, MAS accounts reveal.
Outgoing chief executive Tony Hobman (pictured), who quit the MAS last week, accounted for over a third of the annual total remuneration for MAS directors with a pay package of £314,000. He has waived a £50,000 performance-related bonus.
Chairman Gerard Lemos received £84,000, made up of £75,000 salary and a £9,000 payment in lieu of a pension contribution.
Executive directors Karen Broughton, Mark Fiander, and Lesley Robinson received total pay packages of £148,000, £117,000 and £147,000 respectively.
The remainder was distributed among eight non-executive directors.
The MAS remuneration committee has decided to award performance-related bonuses to Broughton, Fiander and Robinson though has not disclosed the level these have been set at. The FSA has yet to agree these bonuses.
The MAS accumulated a surplus of £4.7m in the year to the end of March, taking its total surplus to £5.6m, compared to £834,000 for the previous year. The surplus will be carried forward to the 2012/13 year.
The accounts say: “The board highlighted this surplus to the FSA and agreed with it to carry the surplus forward into 2012/13 on the basis that a reserves policy is established for 2012/13 onwards.
“This year’s reserves will provide the appropriate cash flow funding for remaining transformation costs and also provide cover for possible liabilities.”
The MAS has set aside £4m for staff redundancies, which so far have seen the MAS workforce reduce from 156 staff to 100 as at the end of March.
Clearwater Financial Planning managing director Duncan Carter says: “The level of directors’ pay does not represent value for money, in fact it is wide of the mark.
“In principle I agree with the MAS, but I do not agree with how it has been rolled out and how it is funded.”
Thameside Wealth director Tom Kean says: “The problem with the MAS is there appear to be no checks and balances to their pay levels. Performance-related bonuses are good in theory but they seem to get paid even if the performance is bad.
“It is such a shame we do not have a resource we can all be proud of, instead of what feels like a Government quango undermining all our good work.”