Did the FSA need to offer MAS boss Hobman £350k?

MONEY ADVICE

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Appearing before MPs on the Treasury Select Committee last week, Financial Services Authority (FSA) chairman Lord Turner said it was necessary to offer Tony Hobman a pay packet amounting to £350k to tempt him to head up the Money Advice Service (MAS).

His actual total annualised remuneration package in 2010-11 was £364,061, of which £318,114 was paid pro rata as he joined in May 2010, according to written evidence submitted to the committee. Lord Turner said the package, which he now admits was too high, was set by cross reference to the then salary and remuneration of the head of the Financial Services Compensation Scheme (FSCS), and also taking into account his previous remuneration. But was this correct, and how does Hobman's pay, subsequently £314,061 in 2011/12, stack up compared to his peers? Mark Neale became chief execut...

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