Outgoing chiefs of City watchdog get £803,000 for handover

Britain's City watchdog paid three top directors £803,000 to leave the organisation, according to its final annual report published yesterday.

The Financial Services Authority (FSA) gave its former chief executive Hector Sants £300,178 for a six-month handover period, while the chairman, Lord Turner, received £252,000. The enforcement chief, Margaret Cole, was paid £250,897 for five months' notice.

The FSA said the payments were "contractual entitlements" and the three were either barred from taking any paid employment, or were restricted in the roles they could take during that time.

Shortly after his notice period ended Mr Sants joined Barclays on a package reported to be worth £3m after turning down an offer from Deloitte.

Ms Cole joined PricewaterhouseCoopers as general counsel, where she will sit on the UK board and could have doubled her FSA salary of £600,000.

Lord Turner has various roles on boards and committees and sits on the Bank of England's Financial Policy Committee. His total pay for the year was £785,153, while Mr Sants received £550,441. Neither received a bonus.

Martin Wheatley, who has since taken over as the chief executive of the Financial Conduct Authority, one of the FSA's two successor bodies, was paid £667,085 for seven months' work, including an £86,000 bonus.

The FSA said its policy was to set salaries "at, or around, the median of the relevant market competitive levels".

The watchdog also revealed that the levels of possible "insider trading" by people with knowledge of takeover deals before they are announced declined in 2012 to their lowest level since 2003. In total, some 15 per cent of deals saw suspicious price movements in the shares of either predator or prey before an announcement, down from 20 per cent in 2011 and 21 per cent in 2010.

However, deal activity is much lower than before the financial crisis. The lack of dubious price moves could be because miscreant traders have become more circumspect, fearing that their activities would stand out because of deals' rarity value.

Simon Morris, from the City law firm CMS Cameron McKenna, said: "The bare facts beg several questions – much insider dealing uses price-sensitive information that is not merger-related and this is not reflected in this statistic.

"Further, if over one merger in eight is still preceded by potentially suspicious dealing, why has the FCA/FSA only brought a bare handful of cases? Are we really to believe it lacks adequate powers or resources in such a key area? The message must be that the FCA should fulfil its own call to action."

Bankers face curbs

Stephen Hester's £1.2m salary as chief executive of Royal Bank of Scotland would have been capped, even with bonuses on top, at £471,000 under new European rules on state aid on lenders. To encourage executives not to tip their banks into such a dire crisis that they have to be bailed out, the EU has said senior staff in banks receiving new state aid would earn no more than 15 times the pay of the average employee. Bonuses would be capped at two times salary under rules due to take effect next month.

Further measures include rules to force banks to wipe out their shareholders and creditors before getting state aid.

Suggested Topics
PROMOTED VIDEO
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Sport
Luis Suarez looks towards the crowd during the 2-1 victory over England
sport
Life and Style
Cheesecake frozen yoghurt by Constance and Mathilde Lorenzi
food + drinkThink outside the cool box for this summer’s frozen treats
News
John Barrowman kisses his male “bride” at a mock Gretna Green during the Commonwealth Games opening ceremony
peopleBarrowman's opening ceremony message to Commonwealth countries where he would be sent to prison for being gay
Sport
Sir Bradley Wiggins removes his silver medal after the podium ceremony for the men’s 4,000m team pursuit in Glasgow yesterday
Commonwealth games Disappointment for Sir Bradley in team pursuit final as England are forced to settle for silver
Sport
Alistair Brownlee (right) celebrates with his gold medal after winning the men’s triathlon alongside brother Jonny (left), who got silver
England's Jodie Stimpson won the women’s triathlon in the morning
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Junior Research Analyst - Recruitment Resourcer

£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...

Senior Analyst - Financial Modelling

competitive: Progressive Recruitment: This really is a fantastic chance to joi...

Associate CXL Consultant

£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

Business Anaylst

£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...

Day In a Page

Backhanders, bribery and abuses of power have soared in China as economy surges

Bribery and abuses of power soar in China

The bribery is fuelled by the surge in China's economy but the rules of corruption are subtle and unspoken, finds Evan Osnos, as he learns the dark arts from a master
Commonwealth Games 2014: Highland terriers stole the show at the opening ceremony

Highland terriers steal the show at opening ceremony

Gillian Orr explores why a dog loved by film stars and presidents is finally having its day
German art world rocked as artists use renowned fat sculpture to distil schnapps

Brewing the fat from artwork angers widow of sculptor

Part of Joseph Beuys' 1982 sculpture 'Fettecke' used to distil schnapps
BBC's The Secret History of Our Streets reveals a fascinating window into Britain's past

BBC takes viewers back down memory lane

The Secret History of Our Streets, which returns with three films looking at Scottish streets, is the inverse of Benefits Street - delivering warmth instead of cynicism
Joe, film review: Nicolas Cage delivers an astonishing performance in low budget drama

Nicolas Cage shines in low-budget drama Joe

Cage plays an ex-con in David Gordon Green's independent drama, which has been adapted from a novel by Larry Brown
How to make your own gourmet ice lollies, granitas, slushy cocktails and frozen yoghurt

Make your own ice lollies and frozen yoghurt

Think outside the cool box for this summer's tempting frozen treats
Ford Fiesta is UK's most popular car of all-time, with sales topping 4.1 million since 1976

Fiesta is UK's most popular car of all-time

Sales have topped 4.1 million since 1976. To celebrate this milestone, four Independent writers recall their Fiestas with pride
10 best reed diffusers

Heaven scent: 10 best reed diffusers

Keep your rooms smelling summery and fresh with one of these subtle but distinctive home fragrances that’ll last you months
Commonwealth Games 2014: Female boxers set to compete for first time

Female boxers set to compete at Commonwealth Games for first time

There’s no favourites and with no headguards anything could happen
Five things we’ve learned so far about Manchester United under Louis van Gaal

Five things we’ve learned so far about United under Van Gaal

It’s impossible to avoid the impression that the Dutch manager is playing to the gallery a little
Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform