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Bankers across the UK will be enjoying the brief hiatus of pressure around their pay packets, as the man-on-the-street’s attention instead turns to lavish salaries in the public sector.
By now, you’ll no doubt be aware of the furore around high-earning civil servants exposed by last night’s Panorama and the Bureau of Investigative Journalism.
One commentator described it as “like robbery without the violence”. Sound like a familiar sentiment?
Among the vast swathes of data now available on the BBC website, it’s possible to find some of the highest earning public sector workers with a financial services focus.
Firstly, there’s the top brass at the Asset Protection Agency (which was recruiting last year ).
Mentioned on the list are Ion Dagtoglou, chief investment officer (167.5k); Jens Bech, chief risk officer (167.5k); Stephan Wilcke (152.5k); and Brian Scammell, chief credit officer (132.5k). Such sums are more likely to illicit snorts of derision rather than outrage among some sectors of the financial community.
The Bank of England also comes under scrutiny, but Governor Mervyn King (305.7k); and deputy governors Paul Tucker (258.1k) and Charlie Bean (254.2k) are the only named people. There are, however, 68 employees earning between 115k-195.5k.
Let’s not forget that it was only 18 months ago, when redundancies were rife within the City, that working in the public sector – particularly the Financial Services Authority – was being touted as an attractive option for investment bankers.
Because of its independent status, the FSA escaped the probing eye of Panorama. Still, both outgoing chief executive Hector Sants’ (742k) and chairman Adair Turner’s (482k) pay packets would be considered pretty high for what many consider a public sector role.
Let’s also not forget that the FSA is still struggling to fill those 480 roles announced earlier this year. Financial News shows that there are still 320 vacancies, mostly because for every two people it hires, one leaves. 187 people have departed this year, most probably because of fears over the regulator’s future.
Most of these new roles are around risk and regulation, and there’s a breakdown of pay within these jobs on the FSA’s website. At the lower end, a risk associate can earn a decidedly modest 28-57k, while the most highly paid positions offer salaries of 87-170k.
As a base salary, this doesn’t compare too unfavourably with risk roles investment banks, according to figures from recruiters PSD Group.
At last, someone else for the Jeremy Kyle addicts to shout at, I have always argued that the public sector were the real villains that got us into this mess – the bulk of our structural deficit was spent on recurrent spending in the public sector, although someone might like to explain the numbers to Nick Clegg !
I think that this is only part of the analysis though; we need to look at total comp. I recently spoke to an Army Major who calculated his total comp at just under 200k (before tax) once allowances for things like the following are included: 4 children at very good boarding schools – paid for by the taxpayer, free medical cover and prescriptions, generous (non-contributory) final salary pension eligibility at around 40 years of age, home to work travel subsidy (if you work over 10 miles from home) and a house provided at a tiny fraction of commercial rates.
Just imagine what’s going on in the NHS and DFiD that are not yet publically accountable !
I think the Wizard has been drinking too much of his potions….200k for an army major with a serious job! Good money spent in comparison to other less valuable professions…wizardry being one.
Cut public sector pay and lets employ people who find it an honor to serve. Those that seek greed work else where, ease.
It shows you, risk is terrible EVERYWHERE!!!!!!!!!!!