Former FCA chief Andrew Bailey turned down £40,000 bonus from regulator

Former FCA chief Andrew Bailey turned down £40,000 bonus from regulator


Bailey (pictured) had been awarded a total performance bonus of £68,000 for 2018/19, of which £27,200 was paid in March 2019.

The remaining £40,800 had been held in deferment and due to be paid earlier this year – just as Bailey started his new role as governor of the Bank of England.

However, he “declined to receive” the payment, which was on top of his annual salary of £435,000, annual reports and accounts from the FCA for the year ending 31 March 2020 have revealed.

There was no reason given for Bailey not taking the bonus.

During the year 1 April 2019 to 31 March 2020, senior directors at the FCA were eligible to be considered for a performance-related award up to a maximum of 35 per cent of average base salary.

However, the remuneration committee decided that bonuses for voting members of the executive committee should be deferred until a report on the investigation into the circumstances surrounding the collapse of London Capital & Finance plc (LCF) has been issued.

For the year 2019/20, interim chief executive Christopher Woolard was awarded a total performance bonus of £34,200, which is held in deferment until the outcome of the LCF review.

His annual salary amounted to £316,000.

Chair Charles Randell took home a basic salary of £170,000.


FCA staff bonuses

During the year, an overall 81 per cent of eligible employees received a salary increase and 89 per cent of staff received a bonus.

Around seven per cent of staff were awarded a bonus between 20 and 30 per cent, while a third received bonuses worth 10-14.9 per cent.

Nearly a quarter of staff received a bonus between 15 and 19.9 per cent of salary.

The reports showed the FCA accumulated reserves increased by £121.4m, from a deficit of £58.1m to a surplus of £63.3m at 31 March 2020.

During the 12 months, the regulator said its measures had given immediate support for over 3.4 million consumers and for thousands of businesses affected by coronavirus.

Other major work included preparations for Brexit, change in the culture of financial firms with the extension of the Senior Managers and Certification regime, and educating consumers on scam prevention.

The regulator had also improved protection for users of high-cost credit, including a price cap on rent-to-own products, and imposed 15 financial penalties on firms totalling over £224m for misconduct.

Christopher Woolard, interim chief executive of the FCA, said: “The last six months alone have shown the FCA’s efforts to ensure as many people and businesses reach the other side of coronavirus’s immediate impact in as good a shape as possible.

“The FCA’s speed of action in the midst of the crisis was made possible by long-term work, much of which came to fruition last year.

“For example, our ability to act in the credit market was underpinned by reforms of years, which was pushed further in 2019; our joint focus with the Bank of England on firms’ operational resilience has proven its worth in lockdown; and the measures we’ve taken to transform the FCA and improve its data analysis have helped us manage the current crisis.’

Charles Randell, chair of the FCA, added: “We were prepared for a year of change and challenge, and the year certainly brought those.

“To ensure that we are able to meet the challenges ahead, we will continue to transform our own organisation, building on lessons from our rapid response to the coronavirus crisis.

“This transformation will equip us better to identify harm, intervene more quickly and take tough enforcement action against serious misconduct as we supervise nearly 60,000 authorised firms.”