Bank of England reveals executive pay

Outgoing Bank of England governor Mervyn King

The Bank of England has set out how much it paid its most senior staff in the last financial year, including a £568,300 pension benefit paid to deputy Bank governor Paul Tucker.

The Bank’s 2013 annual report, published yesterday, show that outgoing governor Sir Mervyn King received salary and benefits of £307,750 for the year to 28 February. King does not receive any pension benefit for his second term of office from July 2008 to June 2013, and neither King nor the deputy governors receive bonuses.

Incoming governor Mark Carney joins the Bank next month from the Bank of Canada, and will be paid an annual salary of £480,000, a cash allowance in lieu of pension at 30 per cent of salary and an annual accommodation allowance of £250,000.

Deputy governors Paul Tucker and Charlie Bean received pay and benefits of £263,220 and £260,395 respectively, in addition to pension entitlements equivalent to £568,300 and £321,400.

Including executive and non-executive directors, total pay and benefits for Bank senior executives came to £2.9m for 2012/13. Executive director Andrew Bailey, who was appointed as Prudential Regulation Authority chief executive in February, received pay and benefits of £202,429.

The four external members of the Bank’s Monetary Policy Committee were each paid £101,362 over the year, plus 30 per cent of salary in lieu of a pension. They are appointed for a three year term on a part-time basis averaging three days a week.

The external members of the interim Financial Policy Committee were each paid £55,000 a year.

In his last forward to annual report, King said there were good reasons to believe a gentle economic recovery is underway, but stressed the need for banks to deal with capital shortfalls.

King added it had been a privilege to work at the Bank over the last 20 years.

He said: “My final task is to welcome Mark Carney as the new governor. He will bring great qualities and his own approach. I wish him every success and I know I am leaving the Bank in safe hands.”

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Source: Bank of England 2013 annual report