Beastly Bonuses

It appears that it is not just the bankers that court controversy with their bonus culture……the regulator of the banks is also embroiled.

 

That’s right......the regulator that has slammed a bonus culture has itself a bonus culture. 

 

The Financial Services Authority (the city regulator) announced this week from the published accounts that:

 

Hector Sants (former COO) received a £300,178 bonus on leaving employment as part of his ‘contractual entitlement’.

 

Adair Turner (former Chairman) received a bonus payment of £252,000.

 

Martin Wheatley (Chief Executive) received a £86,000 bonus on top on his £429,999 basic salary.

Perhaps more alarmingly, total director pay reached £2.4 million over 2012 / 2013, up 20% from the previous year.

 

I guess opinion can be given from many different angles on this, but here’s my Top 3.

1. How is success measured to warrant a ‘bonus’? Fining aggressively? Allowing only so many mis-selling scandals? Keeping tax payer bailouts below a certain level?                                                                                                                                    
2. The UK is currently gripped for another taxpayer funded bailout for Co-operative Bank. The regulator failed to recognise or address this last year leading up to the current issue. Should their bonuses not part fund their bailout?
3. Why is nobody challenging these bonuses? Quite simply……the regulator is a non-profit making organisation funded by the companies they regulate.

Enough said.

A shameful reality.