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.
Sales of the tablet are set to fall again, say analysts
Met Police confirm there was a 'minor disturbance' and that no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Parties threaten resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
- 1 Indian footballer Peter Biaksangzuala dies after injuring spine doing somersault celebration
- 2 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 3 Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
- 4 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 5 Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
'Russian submarine spotted' by Swedish military off coast of Stockholm
Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver allegedly kicks gay couple off for kissing
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...