Bank of England to pay new chief more than $1,000 a day for housing

Wed Dec 19, 2012 11:20am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By David Milliken

LONDON (Reuters) - New Bank of England Governor Mark Carney will be paid a housing allowance of more than $1,000 a day when he starts the job next year, on top of a salary that is already among the highest for a major central banker.

The BoE said on Wednesday that Carney, currently governor of the Bank of Canada, will receive a 250,000 pound ($406,000) a year housing allowance in addition to his 624,000 pound salary.

The payments to the former Goldman Sachs investment banker will be well above what current BoE governor Mervyn King receives - a salary of 305,000 pounds and a generous pension.

Britain's finance minister George Osborne went to great lengths to attract Carney to Britain, changing the application process and allowing Carney to serve a five-year term rather than the eight years that had originally been foreseen.

While Carney's salary was announced at the time of his appointment, the scale of his housing allowance had not previously been made public.

"The (BoE's) non-executive directors ... confirmed their agreement to and support for an annual accommodation allowance of 250,000 pounds for the next governor and his family which had been offered to him prior to his appointment," the British central bank said in a statement.

Even without the housing allowance and taking into account the lack of a pension, Carney's remuneration is high compared to other major central bankers.

U.S. Federal Reserve Chairman Ben Bernanke gets roughly $200,000 a year. European Central Bank President Mario Draghi receives about 370,000 euros ($489,000) plus an official residence, and the Bank of Japan pays a similar amount. Carney earns around $500,000 a year at the Bank of Canada.   Continued...

Bank of Canada Governor Mark Carney views some historic gold coins dating back to before World War I, at the Royal Canadian Mint in Ottawa November 28, 2012. REUTERS/Blair Gable