The Financial Conduct Authority (FCA) is planning to raise salaries for around 800 of its lowest-paid staff but scrap bonuses from next year, amid tensions at the regulator over pay.
The City regulator on Tuesday said its lowest paid employees will receive average salary increases of £5,500, including performance-related pay.
Staff who meet their performance targets, which equates to around 85 per cent of the workforce, will receive salary increases of at least five per cent this year and four per cent in 2023, the FCA said.
The regulator said it will also pay employees a one-off payment equivalent to four per cent of salary in April in recognition of “the changed economic environment” since the consultation was launched in September last year.
However, the regulator said that from next year, staff will not be paid any discretionary cash bonuses, with the final bonuses paid to the highest performing colleagues in April 2022.
The announcement follows the FCA’s consultation from September to December 2021, which attracted 4,500 responses and led workers to threaten strike action due to proposed changes to pay.
“I’m hugely grateful for the time colleagues have spent contributing to the consultation and I understand the strength of feeling about some of the changes we are making,” said FCA chief executive Nikhil Rathi (pictured).
“We have welcomed the open debate and discussion and, with the board, considered all the feedback we have received.
“We believe we have developed a fair, competitive, and sustainable offer that will help us achieve our regulatory objectives, as well as diversity goals, that supports the lowest paid and the strongest performers, with most colleagues receiving a minimum salary increase of over nine per cent over the next two years and an average of over 12 per cent over that period.”
Rathi has outlined plans to overhaul the City watchdog, so that it can become more innovative, adaptive and proactive.
Last month, the FCA said it is expecting around 200 new joiners in the first quarter of this year and is promising “one of the best” employment packages of any regulator.