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Carney is first £1m Bank governor

Mark Carney has become the Bank of England's first £1 million governor after it spent nearly £200,000 relocating him from Canada, figures disclosed in its annual report showed.

Mr Carney is paid a basic salary of £480,000 but also receives about 30% in pension contributions plus a £250,000 annual accommodation allowance, taking his yearly pay package to more than £870,000.

But the Bank's report for the 12 months to the end of February showed that it also spent £102,816 on relocating him and his family to London, while it also paid a tax liability of £95,846.

This was because it paid the income tax and national insurance liable for this benefit, plus its own employer national insurance contribution.

Some of the relocation costs related to the Bank's 2012/13 financial year.

But the disclosure reveals that by the end of his first year in charge later this month, the cost of employing him will have been more than £1 million.

It comes weeks after Mr Carney turned his fire on City greed and the problem of growing inequality. He said globalisation had resulted in huge earnings which were "amplifying the rewards of the superstar".

In January, the Bank of England said it was planning to cut up to 100 jobs following a "value for money" review.

The report today said: "It is the Bank's policy to relocate those appointed to senior positions as necessary, and to incur the costs of doing so.

"In line with this policy, the Bank relocated Mr Carney and his family from Ottawa to London. Procurement decisions in that process were taken by the Bank."

The Bank said its remuneration committee takes account of salaries available elsewhere and how this "might affect the availability of good candidates, while bearing in mind the Bank's position within the public sector".

Its accommodation allowance for Mr Carney reflects "the additional cost of living in London rather than in Ottawa".

His predecessor Lord King received a total package of £309,297 for the full-year 2012/2013, the report showed, and £215,021 for the start of 2013/14.

However, unlike Mr Carney he was eligible for the Bank's old Court pension scheme, where benefits were "significantly higher", a spokeswoman said.

Mr Carney's total remuneration for the eight months he was in charge for 2013/14 was £586,010.

The report also disclosed for the first time that the governor has chosen to enrol in the Bank's pension scheme rather than take a payment in lieu of this benefit.

Beneath the highest echelons of the bank, it employs 632 staff on £80,000 or more, including 330 on £100,000 or more and four on £200,000 or more.


From Belfast Telegraph