MPs are pressing for the Government to urgently raise with the FSA the issue of Money Advice Service chief executive Tony Hobman’s £350,000 salary.
The business, innovation and skills committee questioned Hobman (pictured) about the level of his pay in December as part of an inquiry into debt management.
Hobman receives a salary of £250,000 per annum, with the remainder of his pay made up in benefits.
When questioned by the committee about whether the size of his salary was appropriate for the head of a relatively small organisation, Hobman replied that his pay would make him “hugely incentivised” to do the job.
The BIS committee published its report into debt management earlier this week.
The report says: “We are concerned by the high salary of the chief executive of the MAS. At a time of pay restraint we do not believe that the head of a comparatively small organisation should receive a salary £100,000 in excess of the Prime Minister.
“We look to the Government to raise this with the FSA as a priority. The perception of such extravagance does not sit easily in an organisation tasked with helping those in debt.”
The MAS is taking on responsibility for delivering debt advice, taking its total budget from £43.7m in 2011/12 to £86.8m for 2012/13.
It will effectively run two budgets as of April this year. The budget for delivering money advice will be £46.3m while £40.5m will go towards debt advice.
The MAS is funded by a statutory industry levy.