Salaries and bonuses must not be set according to a market average, the FSA says today, despite citing industry levels as justification for a reported £10m worth of pay rises for its staff.
The regulator says it recognises the need for firms to offer competitive remuneration packages but says an industry comparison "should be a secondary rather than a primary factor" in their determination. But in its Business Plan for 2009/10, the FSA said the salaries it offers "must be comparable with the external market" and earmarked £10m to give pay rises to staff whose salaries are now "out of line". The guidance forms part of a draft code of practice on remuneration policies issued today, which the FSA will consult on. FSA spokesperson Heidi Ashley says: "We are not a commercial ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
