The fate of Andrew Bailey's bonus this year will depend on the outcome of an independent review of how the regulator handled the collapse of failed mini-bond provider London Capital & Finance.
In its annual report and accounts for 2018/19 published today (July 9) the Financial Conduct Authority confirmed 60 per cent, £40,800, of its chief executive's bonus for the year would be deferred until March 2020.
Mr Bailey has already received £27,200 of his bonus, which the regulator confirmed had been donated to children's charity Barnardo’s, but the remainder of the balance will be paid at the discretion of the FCA's remuneration committee next year.
The FCA confirmed the bonus decisions for several of its executives to be made by the remuneration committee in February 2020, would be swayed by the findings of an independent review commissioned into the collapse of LCF.
LCF entered into administration at the end of January putting the funds of more than 14,000 bondholders at risk, and the review is expected to investigate the regulator's supervision of the collapsed mini-bond provider.
The FCA said a decision on performance bonuses will be postponed until the outcome of the review is known, even if it means waiting until after next February.
In line with FCA policy Mr Bailey was paid a bonus of £75,000 for 2018, of which £30,000 was paid in May 2018 and £45,000 in March 2019 following approval by the remuneration committee.
The chief executive's bonus dropped this year to £68,000, split into the instalments of £27,200 and £40,800.
A total of 25 MPs have called for Mr Bailey to resign from his position at the FCA for his part in the LCF collapse, which they claim saw him "preside over the biggest financial scandal in recent years".
The early day motion which calls for the resignation expressed "alarm" over concerns the regulator did not act quickly enough to identify and act upon problems in the firm.
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