The Government, the FSA and the Money Advice Service have each refused to take responsibility for MAS chief executive Tony Hobman’s £350,000 salary package.
Last week, MPs from the business, innovation and skills committee called on the Government to urgently raise the issue of Hobman’s salary with the FSA. Hobman gets a base salary of £250,000 a year, with the remainder made up in benefits.
The committee quizzed Hobman about whether his salary was appropriate as part of an inquiry into debt management in December. Hobman told MPs his pay would make him “hugely incentivised” to do the job.
In its report into debt management, published last week, the BIS committee 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 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 Treasury declined to comment, saying the FSA is responsible as it appoints the MAS board. The MAS agreed, saying the FSA set up the board and its pay structures.
The FSA says while it was responsible initially for establishing the MAS board and pay structures, responsibility now falls to the MAS board because it is responsible for reviewing salary packages on an annual basis.
The MAS declined to comment further.
Clearwater Financial Planning managing director Duncan Carter says: “Hobman ought to be motivated by the role and not motivated by the money.”