The Money Advice Service is planning to make changes to staff remuneration packages following criticism of its chief executive’s £350,000 pay package, Money Marketing understands.
MAS chief executive Tony Hobman receives a base salary of £250,000 plus benefits.
Earlier this month, the Treasury select sub-committee announced an inquiry into the MAS which will consider staff expenditure.
In March, Hobman’s salary package was criticised by the business innovation and skills select committee which called on the Government to raise the issue with the FSA as a matter of urgency. The committee said Hobman’s remuneration could be seen as “extravagant” adding it “does not sit easily” in an organisation tasked with helping those in debt.
Asked by the committee last December about his remuneration, Hobman said it means he is “hugely incentivised” in the role.
A source close to the situation says: “The service is considering changes to remuneration that are likely to be announced in the next month or so.”
An MAS spokeswoman says: “Remuneration is kept under constant review by our remuneration committee and is discussed as a matter of course.”
Access Wealth Management financial planner Jim Clancy says: “I cannot see how Hobman can justify that salary.”
Money Marketing first revealed the Treasury select sub-committee was planning an inquiry in March.