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Money Advice Service directors’ pay totals £963k

Tony Hobman

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.”

 

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. Nearly a Million pounds of our money wasted on these people for no discernable benefit to the industry,our IFA sector or the consumer.

    It is a scandal that such expenditure can be made allegedly for the benefit of consumers without any input from the IFA sector as to how the service should operate.

    I would respectfully suggest that the workforce be reduced to NIL and ditch this service once and for all, it is inadequate, has no regulatory responsibility or control and uses untrained staff with very little knowledge of the industry to give so called “free advice” to consumers.

    We are daft to put up with this prolifligate spending of our fees by the FSA.

    Another pathetic failure.

  2. Ridiculous!

    How is their pay justified the MAS is a shambles.

  3. In the words of a song (almost): “Money for nothing and your advice for free???”

  4. Something is clearly wrong where government employee’s are paid such vast sums on the basis they need motivation. Sheer greed and shows what happens when government empolyee’s set their own pay rate with no accountability or consideration for the rate that should be fair and is paid overseas doing the same job.

  5. You do realise that we are paying for all this

  6. Astonishing! Is anyone in Parliament not even mildly concerned about this? The Government are closing paediatric heart units around the country whist this obscenity of an organisation pees it up against the wall! Barclays fined £290m where does it go and how many baby units would that pay for? Obscene and shameful but its ok if you waive your bonus! Scum.

  7. I find the change in staffing levels astonishing. It’s gone from 0 employees to 156, presumably with considerable recruitments costs, then down to 100, with £4m of redundancy costs, all in the space of a couple of years. What a waste of money.

  8. Hold on forget the directors pay for a second (yes I agree its a joke) I just wanted to pick up on a point in this report ?

    They have set aside 4 million for redundancies !!!

    How come they hire people only to make them redundant 6,12,18 months down the road someone somewhere needs a firm size 12 planted right up the backside.

    Run a business Pfftt !!! these people would,nt know how to tie their shoe laces. I over heard an FSA bod the other day say ” I dont know why we come in for so much stick”

    Well hear is your answer you mumpty.

  9. “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.”
    So that’s a reduction of 56 staff who on average get (£4,000,000 divided by 56) £71,428 each! How long has the MAS been in existence? Far more than I received for 20 years service… Or am I missing something?

  10. The TSC is clearly concerned, as would be any free-thinking individual with even the barest hint of any financial services knoweldge.

    Now I realise this rules out Mark Hoban but hopefully some treasury mandarin or other will realise that enough is enough.

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