Figures published in the regulator’s annual report and accounts on Thursday revealed Bailey picked up performance-related pay of £75,000 for the year ended 31 March 2018, up from £65,000 the year before. The average pay across the organisation’s staff in 2017/18 was £65,905.
The FCA said £30,000 of Bailey’s bonus was paid in May 2018 and the remaining £45,000 has been held in deferment to be paid in March 2019, subject to approval from the FCA’s remuneration committee.
Bailey has decided to donate the portion he has already received for 2017/18 to the FCA’s two staff charities, Richard House and the Alzheimer’s Society, the FCA said.
Bailey’s full-year basic salary was £440,000, up from £330,000 in 2017, but his overall pay, excluding pension, was £549,000, including the £75,000 performance-related bonus, plus £34,000 of other benefits.
He also received a £40,000 non-pensionable supplement in lieu of pension contributions, taking total FCA remuneration for the year to £589,000.
The ratio of Bailey’s overall pay to the total workforce average is 8.3.
For the previous year, ended 31 March 2017, Bailey pocketed £419,000, excluding pension, but this only took nine months into account as he was appointed CEO in July 2016. His total FCA remuneration for the year was £449,000.
Remuneration paid or payable to FCA directors during the years ending 31 March 2018 and 2017
The FCA said there were no changes to the remuneration strategy this year and it continued to focus on rewarding those who demonstrate successful and consistent delivery against objectives; make a significant overall contribution to the FCA’s goals; and demonstrate the values and behaviours that the FCA expects and requires.
It said during the period under review, 1 April 2017 to 31 March 2018, executive board members and senior executives were eligible to be considered for a performance-related award up to a maximum of 35% of average base salary applying during the previous year. Non-executive directors were not eligible to be considered for an award.
It said: “All salary increases and incentive awards for staff in 2017/18 were a matter for management judgement against our common set of performance standards. The aim has been to ensure that members of staff at all levels received appropriate recognition for their performance.
“We made a budget of 2% available for salary increases, supplemented by an additional 0.5% to address anomalies. This year 77% of all our employees received a pay award.”
