Mark Carney's move cost UK public more than £100,000

Taxpayers laid out more than £100,000 to pay for the Bank of England's governor to move house from Canada to the UK, the Bank's annual report has revealed.

Mark Carney's total relocation expenses were £102,816. They included a business-class flight to Britain immediately before joining the Bank and economy-class flights to look for schools and for his family's journey to the UK.

The moving payments were on top of the £874,000 pay deal the former Goldman Sachs executive negotiated when George Osborne persuaded him to leave the Bank of Canada for Threadneedle Street. The pay package made Carney one of Britain's highest-paid public servants.

The bill also included hotel costs, tax advice and removals expenses. Carney reportedly had up to six parking bays suspended near his London house at a cost of £1,300 to accommodate a giant removal lorry, which snapped a branch from a tree.

The governor is paid a basic salary of £480,000, pension contributions worth £144,000 and a £250,000 annual housing allowance to help him pay the extra costs of London's property market compared with his Ottawa home. Carney's pay outstrips that of Lord King, whom he replaced on 1 July last year.

The annual report revealed that King received leaving gifts worth £17,042 – almost £4,000 more than the Bank disclosed last year. The extra costs included paying for bound copies of King's minutes and speeches, his signature books, the engraving of his napkin ring and accompanying napkins.

The Bank's deputy governors, the report shows, have been awarded their first pay rise since 2010 with salaries up 2% to £263,985.

External members of the Bank's financial policy committee and independent directors of the PRA were paid £77,520 last year but their pay has jumped to £90,698 for FPC members and £102,326 for PRA directors "in the light of experience [and] the time commitment involved for the members of each of these committees". The increases contrast with Osborne's pledge last year to limit average public-sector pay growth at 1% until next year.

The highest paid employee at the Bank after Carney is Charlotte Hogg, the chief operating officer hired from Santander, who earns £259,756. Julian Adams, who joined the Bank from the FSA, is on £239,343 and Ralph Coates, the Bank's new finance director, gets £209,133. Elsewhere in the Bank, 632 people earn more than £80,000 and about 100 earn more than the prime minister's salary of £142,500.

However, salaries at the bank would be dwarfed by equivalent pay at banks in the private sector where a top finance director could earn more than £1m in salary and bonuses. Joanna Place, promoted in December to human resources director, earns £170,613. She may have her work cut out after the annual report showed a £5m underspend at the Bank because of hiring delays and higher staff turnover at its Ppudential regulation authority watchdog division.

The Bank took over responsibility for regulating banks following the breakup of the Financial Services Authority early last year. Employee turnover at the PRA was 11.6% – up from 10.4% in the final year of the FSA when staff were leaving in large numbers before the regulator was broken up.

Powered by article was written by Sean Farrell, for The Guardian on Tuesday 17th June 2014 19.07 Europe/London © Guardian News and Media Limited 2010


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