In the world of U.K. financial regulation, it pays to supervise markets, not banks.
Andrew Bailey, chief executive of the Prudential Regulation Authority, earned 340,421 pounds ($577,000) in the past year, according to the agency’s annual report published today. That’s little more than half the 667,085 pounds paid to Martin Wheatley, chief executive officer of the Financial Conduct Authority, which oversees British markets.
Bailey made less than his predecessors did at the Financial Services Authority, which was split into the PRA and FCA after three U.K. banks required government rescues following the 2008 credit crisis. Hector Sants, the FSA’s last CEO and Wheatley’s predecessor at the FCA, earned a total of 530,441 pounds in 2013. Adair Turner, the final FSA chairman, earned 785,153 pounds, according to the agency’s annual report published in July last year.
Finding resources was “a significant challenge” for the PRA, Bailey said in the report today. The regulator had “delays in recruitment and a higher than expected turnover rate” among staff, he said.
The London-based PRA, a unit of the Bank of England, paid the 1,038 people on its staff 97.9 million pounds last year, according to its financial statement. The FSA spent 314 million pounds on 3,439 employees in 2012.
The Bank of England didn’t need to offer “vast sums” in compensation to build up its regulatory staff, former central bank Governor Mervyn King said in 2011.
The central bank got authority to supervise lenders in April 2013 as part of an overhaul, driven through by Chancellor of the Exchequer George Osborne, of bank regulation in the aftermath of the financial crisis.