London, June 3 (IANS) The chief banker of England has refused a pay hike of over 15,000 pounds in the next two years, putting into practice what he preaches about cutting down on public expenditure.
Governor of the Bank of England, Mervyn King, has said no to his right to a 2.5 percent increase in salary in 2010 and 2011, according to the bank’s annual report.
His annual pay packet with benefits will, therefore, remain at 305,764 pounds. That’s around 30,000 pounds more than the country’s highest paid civil servant.
However, his two deputies – Paul Tucker and Charles Bean – will both continue to accept their 2.5 percent rise. Their basic salaries are 252,497 pounds each. Twelve employees of the Bank of England earn more than 150,000 pounds, the report said.
In his foreword to the report, King stressed the limitations of the current regulatory framework, arguing: ‘The system cannot be allowed to revert to its former ways as if nothing has happened. We must seize this opportunity for reform.’
He reiterated his concern surrounding banks that are ‘too important to fail’ and stressed that ‘we cannot allow this anomaly to continue’.
It is for the second time that King has refused a pay increase. When he was re-appointed governor in 2008 he was offered a raise of more than 100,000 pounds, he declined it saying it would have been ‘inappropriate’.
Meanwhile, King’s pension has stopped as he has reached the age of 60 at which the pension scheme deems that a person has retired.
King’s term runs till June 2013. He has so far accrued a pension of more than 4 million pounds while at the Bank.
