The vast majority of FSA staff will not get a pay rise this year but the regulator has confirmed that it will continue to pay bonuses.
In an internal email to staff, FSA chief executive Hector Sants said the regulator had not put aside funds for pay increases this year.
The email says: “There will be no pay rise for the vast majority of staff.”
But he said the FSA’s bonus pot would be the same as last year at 15 per cent of the total salary pot.
The FSA is expected to publish its 2010/11 budget next month.
In the 2009/10 budget, the FSA’s staff costs, including travel, training, recruitment and pension scheme deficit reduction contributions, totalled £306.4m. This was up by 24.4 per cent from £246.4m in 2008/09.
The average bonus paid to regulator executives in May last year was £19,100, while the average for other staff was £4,107.
An FSA spokeswoman says the decision takes into account “the general economic climate and pay trends in the marketplace”. She adds:
“Some performance related bonuses may still be paid in relation to performance last year.”
Facts and Figures Financial Planners managing director Simon Webster considers that senior regulators should be fired rather than rewarded for their failures.
He says: “For the vast majority of tier-one and two staff at the regulator, bonuses are built into their remuneration package which they have reasonable grounds to expect if they have done their job properly.
“But those senior staff at the regulator making policy decisions and failing to regulate the banks should not only not get a bonus for their part in totally messing up as regulators, they should also get the sack.”