Thursday 10th June 2010

FSA paid staff £22m in bonuses in 2009/10

Article published by IFAOnline

The FSA paid staff almost £22m in bonuses in the year to 31 March 2010, figures show.

According to the regulator's annual report 2009/10, published today, the total amount paid out in staff 'annual incentive rewards' in 2009/10 was £21,998,813, which equates to 13.8% of its total salary bill. This compares with £19.7m and 14% last year.

The FSA says bonuses are discretionary and are only paid to those staff deemed to have met performance criteria set by managers.

It adds there was no standard pay rise awarded to FSA staff during 2009/10 and 91.4% of people did not receive a salary increase in the pay review process. As of 31 March 2010, the regulator had 3,150 members of staff.

Outgoing FSA chief executive Hector Sants received a 'performance related' bonus of £108,000 in the year to 31 March 2010, which he has donated to charity. He also donated to charity a bonus of £130,000 awarded to him in 2008/9.

The former banker is stepping down from the FSA this summer. His resignation cast uncertainty over the regulator's future because the Conservatives' pre-election policy was to close down the watchdog. It has since moved only to reduce its powers.

Elsewhere, FSA chairman Adair Turner received a salary of £416,000 which, including benefits, was topped up to £482,442. As chair, he is ineligible for a bonus.

Sally Dewar was paid a £400,000 salary with a performance-related bonus of £85,000 and 'other benefits' of more than £91,000, while Jon Pain received a £439,000 salary, an £85,000 bonus and near-£80,000 in benefits.

The FSA's remuneration committee has approved Sants' departure terms, which prevent him from working for any other financial services business or listed company for a period of six months.

FSA key individuals' remuneration 2009/10

Adair Turner, chairman
Salary: £416,000
Bonus: Ineligible
Other benefits: £66,442
Total 2009/10: £482,442
Total 2008/9: £246,546

Hector Sants, chief executive
Salary: £500,000
Bonus: £108,000 (donated to charity)
Other benefits: £134,011
Total 2009/10: £742,011 (£634,000)
Total 2008/9: £623,170

Sally Dewar, managing director, wholesale
Salary: £400,000
Bonus: £85,000
Other benefits: £91,233
Total 2009/10: £576,233
Total 2008/9: £435,179

Jon Pain, managing director, retail markets
Salary: £435,000
Bonus: £85,000
Other benefits: £79,564
Total 2009/10: £599,564
Total 2008/9: £312,289

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