Former City watchdog the Financial Services Authority continued to pay former chief executive Hector Sants for six months after he left the regulator, contributing to a salary of more than £530,000 for the 2012/2013 financial year.
Mr Sants continued pay meant he only earnt about £300,000 less from the FSA in the 2012 to 2013 tax year than he did the previous tax year - despite the fact he only remained with the watchdog for three of those months.
Opprobrium greeted the news last year that Mr Sants, who had been widely expected to head up the new Prudential Regulation Authority under the new twin peaks regime, had received a salary including bonuses of more than £800,000 for 2011/2012. Today’s (10 July) report reveals the total salary for that year was in fact £835,731.
FTAdviser revealed last year that this salary is more than five times the highest paid staff at the US financial regulator, the Securities and Exchange Commission.
He was paid £530,441 for 2012 to 2013 because his contract stated on leaving the FSA he was entitled to a further six months of full pay and benefits, as he was unable to take paid employment with another organisation.
This contractually required pay amounted to £300,178. He also received a salary of £186,614 for the three months of last year that he remained with the regulator heading up the prudential business unit ahead of bifurcation.
Mr Sants announced he had decided to turn his back on the FSA back in March 2012. He had already resigned from the watchdog’s top job in 2010 but was persuaded by the incoming coalition government to stay and oversee the transition to the new regulatory regime.
In December it was announced Mr Sants would join Barclays bank in a newly created role to overhaul the bank’s compliance procedures.
The FSA annual report also reveals Martin Wheatley earned £667,085 last year after taking the reins of the conduct business unit within the FSA. Mr Wheatley is now chief executive of the Financial Conduct Authority.