Pay tension 'likely at BoE as FSA staff join'

13 March 2013

Tension over remuneration packages is likely to rear its head among staff at the Bank of England (BoE) in the near future.

That is according to two insiders at the institution, who have told Bloomberg there are likely to be issues after it absorbs an influx of professionals from the Financial Services Authority (FSA) in the near future.

Management figures are facing a challenge to make sure morale remains high at the BoE due to the fact that many of the people joining the organization from the regulator are on higher salaries than incumbent staff.

For instance, heads of department at the FSA are paid up to £200,000 ($297,600) annually - a significantly higher figure than the maximum yearly salary of £158,108 for a similar role at the BoE.

As part of the overhaul in the regulation of the UK banking system, the BoE is taking on around 1,300 members of staff from the FSA.

By Asim Shah

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