The FSA's big five collectively earned just short of £2.5m in 2006/7, the regulator's annual report today reveals.
Executive directors Clive Briault, David Kenmir, Hector Sants, and John Tiner, plus chairman Callum McCarthy, earned £2,410, 453 between them – an average of £482,091 each.
Outgoing director John Tiner was the top earner with total pay of £652,577; £430,000 of which was in salary with £95,000 performance related bonuses and £127,577 in ‘other emoluments and benefits’.
This amount was up by almost £80,000 from his previous year’s total of £572,619.
Clive Briault earned the least of the quintet, taking home £408,029, up from £379,540 the previous year. His salary amounted to £285,000, with an extra £65,000 in performance related bonuses and £58,029 in other benefits.
Meanwhile, FSA chair Callum McCarthy's pay dropped to £433,565 from £436,142 in 2005/6.
The statistics were revealed by the FSA as part of its annual report, which details the regulator’s level of success in delivering its goals.
Despite heavy earnings, FSA chair Callum McCarthy was quick to point out in the report’s foreword the contribution made by John Tiner, who will step down as chief executive next month.
“During his time as chief executive, the management structure and systems of the FSA have been substantially altered and improved, and we have made strides towards becoming a much more outcome-focused, more productive organisation,” he says. “All of us will miss him, none more than I.”
According to the report, of the 74 targets the FSA set itself for 2006/07, 61 were delivered on schedule. Of the other thirteen, it says eight were re-planned but still delivered in the 2006/07 financial year while five are still to be delivered.
It adds the number of approved firms fell from 28,969 to 28,281 and, as a result, brought the number of approved persons down from 167,276 to 164,821.
Of the other outstanding findings, the FSA says it levied £14.66m in financial penalties during the year compared to £17.43m last year.
The report also details the FSA’s work with treating customer’s fairly, MiFID and the Capital Requirements Directive.
McCarthy, says: “2006/07 was, like other years, a busy year for the FSA.
“It also marked important developments in work which will continue to be central to the FSA; our work on financial capability is a prime example of this.
“At the same time, we have started a process of far-reaching changes in the way in which we run the FSA, designed to improve the quality of our output and the efficiency with which we discharge our responsibilities.”
McCarthy identifies the success of what he calls “informal encouragement over regulatory action”, offering the examples of establishing greater contract certainty in the UK insurance market and the ending of the backlog of trade confirmations in credit risk derivatives where market-led solutions were found.
He says: “We continue to review our existing regulations, to see where we can eliminate regulations we judge unnecessary, or replace specific rules with reliance on principles."
The FSA chairman also acknowledges more problems lie within the retail market than in wholesale. He lists the reasons as complex products, the information asymmetry between providers and consumers and the low levels of competency of many consumers in making financial decisions.
He says: “We have devoted increased resources and attention to tackling those underlying problems. It will be a long haul to solve them, but we are determined to do so.”
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