Andrew Bailey declined £40,800 bonus when he left the FCA
Former Financial Conduct Authority (FCA) boss Andrew Bailey declined most of his performance bonus when he left the regulator, while former interim chief Christopher Woolard’s pay-out was withdrawn following the findings of the London Capital & Finance (LCF) review, it has emerged.
Bailey resigned from the FCA on 15 March 2020, going on to become governor of the Bank of England.
The City watchdog’s annual report and accounts showed that he was awarded a performance bonus of £68,000 for 2018/19, of which £27,200 was paid in March 2019.
The remaining £40,800 had been deferred and was due to be paid in April 2020, but the FCA revealed that Bailey declined to receive this.
Meanwhile, Woolard held the role of executive director of strategy and competition at the FCA from January 2013 to 16 March 2020. He then took on the position of interim chief executive until 30 September 2020, when he handed the reins to Nikhil Rathi and also stepped down as an executive director.
The FCA said for 2019/20 Christopher Woolard was awarded a total performance bonus of £34,200 which was held in deferment pending the outcome of the LCF review.
Read more: Treasury Committee calls for FCA changes after LCF failings
In the annual report, the regulator said it was decided that Woolard’s bonus will not be paid “as a direct outcome for the findings of the LCF review”.
Mini-bond provider LCF collapsed into administration in January 2019, with more than 11,000 individual investors having invested in bonds worth £237m.
The Treasury commissioned Dame Elizabeth Gloster, a renowned international arbitrator who was the first female judge of the Commercial Court, to lead an independent investigation into the FCA’s supervision of LCF.
In late 2020, Gloster published her findings from the review, which highlighted a number of regulatory failings which may have contributed to the LCF crisis, including a lack of engagement between the FCA and regulated entities.
It found “significant gaps and weaknesses” at the FCA under Bailey’s leadership and that the regulator did not effectively supervise and regulate the mini-bond provider.
Read more: FCA outlines progress of LCF recommendations
Meanwhile, Megan Butler, who was also named in the Gloster report, was one of the top-earning executive directors last year, with total pay of £348,000 in the year ending 31 March 2021.
Read more: FCA boss defends appointment of new supervision and policy head
Jonathan Davidson, who was also named in the Gloster report, earned £244,000 in the 12 months to 31 March 2021, down from £338,000 the previous year. He previously held the role of executive director of supervision, retail and authorisations but was appointed senior adviser for sustainability and climate change in December 2020.
Excluding pensions, Bailey took home £470,000 in the year to 31 March 2020 and Woolard earned £239,000 in the 12 months to 31 March 2021.
