40 percent bonus increase for FSA staff
June 15, 2009 by admin
Filed under News, News-Banking
In the midst of the ongoing financial crisis the UK’s financial regulator, the Financial Services Authority, has hiked up staff bonuses by a whopping 40 percent, according to recently released reports.
Over the course of May the FSA is said to have given out around £20 million in staff bonuses, which is an increase of 40 percent over the past year. These figures were released to the Liberal Democrats under the Freedom of Information Act. The data showed that the FSA gave out nearly £20 million in staff bonuses compared to less then £14 million the previous year.
The news of the staff bonuses came as the regulator found itself at the centre of fresh controversy about the handling of troubled and nationalised lender, Northern Rock, with officials claiming that the regulator had already identified problems with the lender as early as 2004.
Northern Rock went on to become one of the first high profile victims of the global credit crunch in the UK, and became the victim of the first run on a British bank in around a century and a half, eventually being nationalised early last year.
The figures went on to show that senior staff members at the FSA received average bonuses of around £19,000. The average employee at the FSA received just under £5000 by way of a bonus. The highest bonus that was paid out by the regulator is said to be £90,000.
One official from the Liberal Democrats stated: ‘This government offered hard working teachers and nurses below inflation pay deals while doing nothing to curb regulator executives earning five figure bonuses.’
He added: ‘We all accept the need to attract top-quality workers to the public sector but in some cases it appears these bonuses have been paid out despite serious failings. The size of some of these pay outs would be hard to justify at the best of times, but it looks especially bad in the current economic climate. Regulators must now follow the lead of those in the rest of the public sector who have promised to freeze executive pay.’
Tags: climate, bonus, regulator, figure, fsa bonuses, fsa, northern rock. liberal democrats, past year
