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Sants in line for up to £3m pay package at Barclays

Hector Sants 480

Former FSA chief executive Hector Sants is set to receive a pay package of up to £3m when he joins Barclays next month as head of compliance and government and regulatory relations.

The Financial Times reports Sants (pictured) is set to become one of the 10 best paid executives at the bank.

The newspaper says according to people familiar with the deal, Sants will be paid a base salary of £700,000, with an annual bonus of less than £1m depending on performance. Up to £1.5m will be paid under a long-term incentive plan over at least three years, also based on performance.

Barclays did not comment on the figures but told the FT executives’ incentive plans had paid out at 37 per cent of the maximum over the past five years.

The FT reports Sants chose the Barclays role over a rival job offer from Deloitte, which is believed to have offered him a pay package worth half of what Barclays is paying.

Barclays announced last week the former regulator was taking up a role at the bank and joining Barclays’ executive committee. He will join on 21 January.

Sants will oversee all compliance activities across Barclays and across all regions, in what will be the first time all the bank’s compliance staff will report to one individual.

Sants left the regulator in June but was on paid gardening leaving until the end of the year. During this time he was paid his annual £500,000 salary plus benefits.

The FSA’s annual report for 2010/11 shows Sants was awarded a total pay package of £806,810 in 2011. This is made up of a base salary of £500,000 plus a performance related bonus of £115,000, other benefits of £131,810 and pension contributions of £60,000. Sants was awarded a £143,750 bonus for the 15 months to the end of March, but donated it to charity.


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There are 30 comments at the moment, we would love to hear your opinion too.

  1. UBS fined 940m & Barclays fined 230m for Libor fixing.
    3m looks a good deal for Barclays

  2. how on earth did he justify a performance related bonus at the FSA unless it was based on how many IFA firms he put out of business!!

  3. Derek Bradley ceo Panacea Adviser 19th December 2012 at 9:14 am

    Just an observation, but ” an annual bonus of less than £1m depending on performance” sounds to me to be a little like a performance based commission?

    It would be good to see some of the performance metrics that would influence this payment.

  4. Good job I don’t eat breakfast – this has made me feel sick. Merry Christmas to everyone else who actually knows what they are doing and does an honest days job

  5. WHAT A HYPOCRITE !!! the term ‘snout in trough’ springs to mind. The criticism that he, and the organisation he led, has levelled at bankers and level of bonuses paid over the past four years would lead most right-minded people to think that he would take this opportunity to set a good example, but no, clearly he couldnt wait to dip his snout in the trough. As many high street banks and financials have announced large job losses consigning many employees to a miserable xmas and 2013, Sants has secured himself a very lucrative position – how does this guy look himself in the mirror.

  6. Just last week Barclays announce 2,000 job losses – how many of those made way to cover Hector’s inflated income?

    Good news for Barclays though, as he knows how they think “in the madhouse” and will be able to guide them through to avoid compliance failures, whilst no doubt in touch with his old buddies on the inside

  7. Apart from being sickening to think that one of the 3 architects of the biggest catastrophes to hit the world of FS is able to move to a role like this I am interested to see how Barclays profits are hit by his role in the bank. He had better rightly insist on things being done correctly but also interested to see what happens to him the first time FSA fine them for something he is responsible for. Will a PLC accept his usual “was not my falult as not on my watch” or his other classic “with hindsight maybe I should have shouted louder”. Good riddence to bad rubbish. Merry Christmas to all MM readers and contributors.

  8. Come on journalists 19th December 2012 at 9:36 am

    Look at the first reply posted. Are there no journalists who think this is a potential story worth pursuing relentlessly, if only to categorically prove that there is nothing remiss going on, as suspicion is clearly out there?? ASK QUESTIONS. DEMAND information. Why did Barclays only get that size of fine?. Which individuals at FSA made which decisions? Who had input? Where are the minutes? What were the key decisive factors? What links did those decision makers have with either institution, before or after? Or with Sants. What contact was there between Barclays and Sants during that period? What goes on at the highest levels MUST be ruthlesly exposed and no organisation should be exempt. A lack of transaprency and accountability fuels suspicion.

  9. The “Greed is good2 matra was supposedly a product of the Thatcher/Reagan years but it still applies today in certain quarters.

    Apparently fees and commissions are suspect and have to be eradicated and monitored, respectively.

    When you are once removed from the consumer then it is acceptable to dip your vulipine features as deeply into the trough as it will go because no invidiual has suffered.

    Clive Briault’s alibi for the Northern Rock debacle was, ‘collective responsibility’ yet neither the FSA nor the Treasury seems interested in the collective responsibility owed to the country by those whose snouts are smeared with the financial rewards of stupidity and utter failure.

  10. Incompetent Regulators Award Team 19th December 2012 at 10:00 am

    Reward for failures. That’s what this country’s about now!

  11. “come on journalists” has a very good point, why have these questions not been asked in the wider public domain because something seems very suspicious given the size of Barclays “fine” compared with the other implicated banks and the Hector factor having a position of significant influence!!!!

  12. Financial journalists on this scandal! Forget it. They spend their time writing crap comments about IFAs in the moneysections with as much understanding of the situation as a wart on a gnat’s arse…

  13. FSA let Capita off hook, I sold some Arc Cru, after first getting the large networks research department to look and give OK. PI excess at time £500, because excess is at time of claim and has now been raised to £5000 looks like I shall be put out of business.

    Looks like no justice yet again

  14. What can IFAs do about this?

    Well, if they feel strongly enough, quite a lot.

    Firstly, if they bank at Barclays, then they can take their business elsewhere.

    Secondly, if next year’s clients complain about fees etc, then IFAs can point out that one of the architects of RDR now works at Barclays.

    If they wish to show their displeasure, then they should move their business and personal accounts too.

    IFAs complaining won’t be taken notice of, large swathes of IFAs and substantial numbers of their cients might be noticed.

  15. My word can’t that dainty little nose in the middle of Hecto’s face – “smell the money”.

    A previous poster asked how he could look at himself in the mirror, well when Dracula looked in the mirror there was no reflection looking back.

  16. Can somebody in the political world refer this to the Treasury Select Committee or even the police as there is something very fishy about this in my humble opinion.

    I would agree with the comment from Anonymous | 19 Dec 2012 9:00 am

    UBS fined 940m & Barclays fined 230m for Libor fixing.
    3m looks a good deal for Barclays

  17. £3 mill is just not enough for a guy of his calibre. Just appalling. Perhaps he will just work two days a week so he keeps his work/life balance optimised.

    Happy Christmas Hector, I really wish you the best mate. Really.

  18. Roman Duzinkewycz 19th December 2012 at 12:23 pm

    This is my third post about this ‘dirty’ business – I suggested last week that you should all boycott Barclays – tell your clients what is going on here and how serious this issue is – don’t just sit there and voice your disgust – DO SOMETHING ABOUT IT – they might then take note. If all you are going to do is moan and take no action, this will continue until we are ALL out of work thanks to this lunatic. I have again written to my MP with a copy of the article and his salary to see how far this has gone with the ‘front benchers’ – I live in hope but at least Dick Turpin wore a mask. He is laughing at us all.

  19. Jealousy Jealousy Jealousy 19th December 2012 at 12:24 pm

    The guy is at the top of his profession so he gets paid top dollar thats how the world works. Crappy little IFAs earn a pittance becasue they are not at the top of their profession. Good luck to him concentrate on your own patehtic little lives instead of envying others!!!!

  20. @ Peter Herd

    Whilst I commend you for your concern over this, given your previous and numerous comments on this and previous blogs – have you seriously only just worked out that there is ‘something fishy’ about regulation and those at the top of the slimy pole ?

    Do you really think the TSC (and I speak as one who has entered into much correspondence and conversation) has the ability let alone the will to get involved ?

    Do you actually think that anyone who could do anything about this actually gives a monkeys ?

    Oh dear !

  21. Virtually every financial sector exam have sections about ethics and risk management. The FSA, under Hector, has allowed the banks to sidestep these issues, otherwise why the constant miss selling, and cheating on LIBOR (has no one yet been arrested on this matter, surely it was fraud).

    The surprising thing would be if Hector had not been taken on by one of the big banks. He is after all due some reward for allowing them to get away with murder. Barclays seems like the right ethical home for him.

    However, lets take some positives from this, at lteast there is only bank for him to cock up, rather than a whole industry.

  22. “Disgusting”, What an example to society.

  23. Letter that I sent to the Daily Mail

    Dear Mr Brummer

    The reasons for writing to you is to voice my concerns over the recent appointment of former FSA chief executive Hector Sants to join Barclays as head of compliance and government regulator relations.

    I work as an Independent Financial Adviser running my own business called Essential IFA and I find it very concerning that a former head of regulator can join a major banking organisation with little or no restriction. As you may know Barclays recently have been investigated for their part in the LIBOR scandal and were indeed fine £230 million which was considerably less than other banks like UBS.

    I am very surprised that journalists are not asking awkward questions in who made the decision to lower the amount of fine that Barclays would receive. We have seen a number of high profile FSA staff leave over recent time to join organisations either with banks or accountancy practices. Now I’m not making an accusation that there are any wrongdoing here, but and this is an important, but, it should never be allowed for an individual in a high profile position with a regulator to go and work for a company it regulates, particularly if the individual has been involved in an investigation of that organisation. It has been reported in a recent Money Marketing article that Hector Sants is going to receive a £3 million salary. You can read the concerns of others in financial services:

    That in my opinion should result in question is being asked by the Treasury Select Committee and indeed journalists like yourselves. This type of revolving door recruitment system is open to abuse and should be stopped at once. I myself have worked in financial services for 18 years and I am a supporter of strong regulation but without this revolving door that is open to abuse.

    Hector Sants has been responsible for one of the biggest changes in financial services recently namely the RDR retail distribution review. Which some will argue result in many financial advisers losing their job, now I’m one of the lucky ones who have complied with the regulations but I do find it surprising that the man that bought this system into place is now gone off to a major bank to get paid four times his FSA salary to implement these changes in Barclays. Sorry but again shouldn’t questions be asked why this is been allowed!

  24. uncomfy Facts man 19th December 2012 at 3:42 pm

    anon @ 2.15 has got his facts wrong , three people were arrested the other day in connection with the LIBOR fixing scandal.
    But I expect nothing more of the IFA “profession” when it comes to discussing regulators, yet every other week we are treated to another scandal of oozulum bird’s eggs futures ( or similar nonsensical “investment” being sold to a bunch of grannies as a safe investment.
    Time to take the beam out of your own eyes boys so that you can see clearly to take the mote from out thy brother’s

  25. “Hector’s house”mate Barclays has a dramaticaly reduced fine compared to other banks involved in Libor.
    Could be why he is paid so well because it seems Hector has done the necessary housekeeping??????

  26. @Peter Herd

    With such appalling grammar I imagine the Daily Mail will totally ignore your missive

  27. @uncomfy Facts Man

    I did miss the question mark out but nevertheless I merely raised the question. Perhaps you can enlighten me aboiut whether any of these three were Barclays staff. Even if they were this does not in any way detract from the point I was making, and which so many others are making.

    The banks have done so much that was to the detriment of this country and to businesses and individuals. I very much doubt that this was all down to the 3 people arrested. (Not seen any arrests at HSBC for the Money Laundering problems). At the same time they have been paying themselves obscene amounts. This was all happening on Hector’s watch as the senior regulator.

    Hector has now joined one of the biggest culprits at a huge salary. If I have a beam in my own eye (and I would dispute that) it is not as big as being rewarded £3m a year after looking the other way when the banks were doing so much that was wrong and at the same time making so many advisers unemployed. There are obvious ethical issues here and they should be investigated.

    As I said he now only has one bank to make a mess of, and he will presumable now be answerable to someone, even if it is only the descredited board of Barclays.

  28. To Gary Defector

    I just wanted to thank you for your feedback and as you’re so good at spellchecking and grammar checking, I just wondered if you could forward your contact details so I can get you to check all future postings as you’re obviously not defective in anyway LOL


    Hector Sants you are a liar, a conman and you are on the take for all you can get. You are a sick vile crook and will cheat your way into the highest salary you can get and at the same time dislay no moral fibre and no competence at what you do.

    You are trash tha quite Frankly would have been dealt with correctly and finally if Matthew Hopkins the Witch Finder Genral were still alive.

    You have no right to hold any position in Financial Services at all. Simply because you are morally corrupt.

    If you read these comments and don’t like what I say then have your Lawyers contact Money Marketing and get my details and sue me for libel, if you have what it takes, I will happily face something like you in Court.

    If nothing else I hope that the publicity destroys you forever and you are returned to the place from whence you came.

    I have advised my Legal Representatives – Money Marketing publish and be brave.

  30. Payment for services rendered…

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