FSA chief executive and future Prudential Regulation Authority chief executive Hector Sants is leaving the regulator at the end of June, but will continue to be paid his annual £500,000 salary plus benefits until the end of December.
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.
Any benefits or bonuses to be paid to Sants are yet to be calculated and will be awarded in April. Sants typically donates his perfomance-related bonus to charity.
When Sants leaves the regulator at the end of June, he will be on gardening leave during which time he cannot take up a role with another organisation. Money Marketing understands Sants will be seeking a senior role but has not decided as yet whether this will be in the public or private sector.
Sants was also due to become Bank of England deputy governor as part of the regulatory restructure. His decision to step down means he will no longer assume the role at the Bank of England.
The shock departure comes two years after Sants first announced his intention to step down from the FSA in February 2010. He was due to leave in the summer of 2010, after three years in the position but agreed to stay on after the Government announced its plans to scrap the FSA and replace it with the PRA and Financial Conduct Authority.
Sants said: “When I agreed to stay on as chief executive in 2010, I committed to stay and deliver an orderly transition to the Government’s new regulatory structure. The project is now firmly on track and with the establishment of twin peaks within the FSA I will have achieved that goal.
“Now is the right time to hand over to those who will deliver the long term goals of the future PRA and FCA.
“I am proud of what the FSA has achieved during my time in charge, through what have been incredibly challenging times. I would like to thank all of my colleagues for their dedication, support and hard work. I know I leave the organisation in very capable hands.”
FSA chairman Lord Adair Turner says: “The major reforms made within the FSA since the financial crisis and the progress in delivering the Government’s plan would not have been possible without Hector. He is a truly outstanding public servant of great integrity and has provided the FSA with dedicated leadership and focus through extremely turbulent times.
“I am very sorry to see him leave but I understand his decision, now that he has delivered what he set out to achieve. I would like to thank him for all that he has done.”
Sants will leave the FSA on June 29. Deputy head of the prudential business unit and Bank of England executive director Andrew Bailey will become head of the prudential business unit when Sants leaves. Head of the conduct business unit Martin Wheatley will remain in his current role ahead of becoming the FCA chief executive when the regulatory restructure is completed.
The FSA says it will announce further management changes resulting from Sants’ departure in due course.