FCA chief to pocket £65,000 bonus for first year’s work

FCA chief executive Andrew Bailey was awarded a £65,000 bonus on top of his £330,000 salary for his first year’s work at the top of the regulator, accounts released today show.

The £65,000 bonus will be split, with a £26,000 payment received this March, and the remainder in March next year subject to approval from the FCA’s remuneration committee.

Other senior staff to receive performance related pay-outs include director of strategy and competition Christopher Woolard, whose £50,000 bonus topped up a £300,000 salary, and outgoing chief executive Tracey McDermott, who received an £11,000 bonus and £284,000 in salary for her service during the year.

93 per cent of FCA staff received a bonus in the year. Around 60 per cent received bonuses of between 10 and 20 per cent of salary. 4 per cent received bonuses of between 25 per cent and 35 per cent, the highest on offer.

The regulator’s seven non-executive directors were paid a total of £274,000.

Cost cuts elswhere

Overall, however, the FCA has cut its staff costs by £2.2m, despite increasing headcount by 65 through the year, as the regulator looks to move away from the use of contractor and temporary staff.

The regulator revealed that staff costs had been driven down by efforts to reduce short-term resources “who typically incur higher costs than permanent employees”.

At the same time, average staff numbers over the year increase from 3,570 to 3,635.

The FCA upped its surplus from £10.3m to £56.7m and confirmed that it had gathered an extra £26.8m in fee income from £517.1m to £543.9m.

The amount of penalties the regulator collected, which are diverted to the Treasury dropped significantly, from £877.2m to £189.2m.

Fight against pension scams continues

The FCA today also released an annual report on its enforcement activities. Giving an update on its work on pension scams, the report says the regulator has established a team to give “intelligence and cases” to specialist supervision and enforcement.

In 2016/17, the team created 766 intelligence logs.

The report says: “Since its inception, the team has become the hub of our efforts against pension scams by aggregating all of the intelligence that flows into the FCA. This team also liaises and shares intelligence with The Pensions Regulator, the Treasury, HMRC and the National Fraud Intelligence Bureau under the umbrella of Project Bloom and ScamSmart.”