The FCA boss Nikhil Rathi is now proposing to scrap the bonuses after two independent reviews found the regulator had acted too slowly to protect consumers. He said the payouts had “not been effective at driving individual or collective performance”.
Details of the bonus payouts obtained by the Observer reveal £125,529,590 has been paid out in bonuses at the watchdog since 2016, including bonuses worth up to £45,000 each for executive directors.
In the year to 31 March 2021, £19.8m in bonuses was paid out, with average payouts of about £5,300 for those receiving awards.
These are among the biggest bonus pots ever handed out in a government department or quango.
Gina Miller, the business activist and co-founder of the True and Fair Campaign, which is calling for a package of financial reforms to benefit consumers, said: “These payouts are an absolute insult to people who have lost their life savings or have had their lives decimated because we have a regulator which isn’t fit for purpose.
OK, quango, government, why in buggery should they have bonuses?
But also, the industry itself works on wages plus bonuses. And you would like to have at least a modicum of people at the quango who know the industry from the inside. So, to at least some extent, you’ve got to adopt the pay scales and pay styles of the industry you’re trying to recruit from.
Actually, there’s a good argument that given the incompetents they do have they should be paying better bonuses – and also adopting that other employment feature, firing people on the spot.