Staff who meet their performance targets will receive salary increases of at least five per cent this year and four per cent in 2023. The regulator said that around 85 per cent of staff hit these targets, while those who do not meet their objectives “will be given assistance” to do so.
In addition, employees who meet their performance objectives will receive a one-off, backdated cash payment equivalent to four per cent of their salary in April. The FCA said this was in recognition of the “changed economic environment” since the regulator initially launched its pay consultation in September last year.
The regulator also announced that a new pay benchmark will mean that around 800 of the FCA’s lowest paid staff receiving average annual increases of £4,310. It argued this increases to an average of around £5,500 when other aspects, such as performance-related pay, are included.
Discretionary cash bonuses will be removed for all staff from next year.
Nikhil Rathi (pictured), chief executive of the FCA, said he understood “the strength of feeling about some of the changes” the FCA is making, and that all feedback had been taken on board.
He continued: “We believe we have developed a fair, competitive, and sustainable offer that will help us achieve our regulatory objectives, as well as diversity goals, that supports the lowest paid and the strongest performers, with most colleagues receiving a minimum salary increase of over nine per cent over the next two years and an average of over 12 per cent over that period.”
The changes to the remuneration setup at the regulator have been controversial, with FCA staff who are members of the Unite union voting to strike last month. This was followed by the FCA pledging to go on a ‘hiring spree’, with around 200 new hires in the first quarter of this year.
