Bank of England mulls pay rise for its court

"Just" £15,000 for three days work a month.

The Financial Times' Patrick Jenkins reports that Bank of England officials are considering boosting the pay of the non-executive directors in the Bank's "court" (its governing body):

The eight external non-executives in the 12-seat “court” – as the BoE’s governing body is named – are paid just £15,000 a year for a time commitment of three days a month. The chairman of the court, Sir David Lees, who works three to four days a week in his role, is paid £30,000.

“This needs to change,” said one person who is backing the reforms. “£15,000 is pitiful. It suggests people are only turning up for tea.”

Although "just £15,000" is actually a pro-rata salary of over £150,000 per year, hard for most to reconcile with the phrase "pitiful", there's a new urgency to getting this sorted out sooner rather than later. With the demise of the Financial Services Authority, which was disbanded at the end of March, financial regulation has been split between the new Financial Conduct Authority, which is operated under the aegis of the Treasury, and two bodies run by the Bank of England: the new Prudential Regulation Authority, and the Bank's own Financial Policy Committee.

On top of that, the Bank also now has an explicit remit to protect financial stability in the UK. All of those changes have made the danger of regulatory capture (when a regulator begins serving the interests of the industry they are regulating over the interests of the state) a more pressing issue than it has been for much of the bank's past; and one of the key ways of avoiding that capture is to pay the regulator enough that they don't find themselves beholden to those they are regulating.

Of course, that's less of an issue in the Bank of England than it is elsewhere. For one, sitting in the court remains a part-time job. A number of the members have other work which hardly leaves them penniless. The managing director of Lloyds Banking Group, the chairman of Legal and General Group and the managing partner of Grovepoint Capital are unlikely to find themselves suddenly corruptible because they spend a few days each month working for less than their normal pay; and regulatory capture is less of an issue if the industry being regulated already has half the seats at the table.

Which is probably why the key argument being made internally is one of perception. As one reformer tells Jenkins:

Continuing to call this body the court and paying people so little conveys the wrong impression externally.

But perception differs inside and outside the industries the Bank regulates. While it may be important in conversations with other people working in the city, there's a markedly different perception of the bank in the real world. While it's insulated from public opinion to a certain extent, it may still be a good idea for the court to let the new financial regulatory regime bed in before awarding themselves pay rises – because right now, the crash is still firm in people's minds, and that is something which doesn't justify a large salary at all.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Labour to strip "abusive" registered supporters of their vote in the leadership contest

The party is asking members to report intimidating behaviour - but is vague about what this entails. 

Labour already considered blocking social media users who describe others as "scab" and "scum" from applying to vote. Now it is asking members to report abuse directly - and the punishment is equally harsh. 

Registered and affiliated supporters will lose their vote if found to be engaging in abusive behaviour, while full members could be suspended. 

Labour general secretary Iain McNicol said: “The Labour Party should be the home of lively debate, of new ideas and of campaigns to change society.

“However, for a fair debate to take place, people must be able to air their views in an atmosphere of respect. They shouldn’t be shouted down, they shouldn’t be intimidated and they shouldn’t be abused, either in meetings or online.

“Put plainly, there is simply too much of it taking place and it needs to stop."

Anyone who comes across abusive behaviour is being encouraged to email validation@labour.org.uk.

Since the bulk of Labour MPs decided to oppose Labour leader Jeremy Corbyn, supporters of both camps have traded insults on social media and at constituency Labour party gatherings, leading the party to suspend most meetings until after the election. 

In a more ominous sign of intimidation, a brick was thrown through the window of Corbyn challenger Angela Eagle's constituency office. 

McNicol said condemning such "appalling" behaviour was meaningless unless backed up by action: “I want to be clear, if you are a member and you engage in abusive behaviour towards other members it will be investigated and you could be suspended while that investigation is carried out. 

“If you are a registered supporter or affiliated supporter and you engage in abusive behaviour you will not get a vote in this leadership election."

What does abusive behaviour actually mean?

The question many irate social media users will be asking is, what do you mean by abusive? 

A leaked report from Labour's National Executive Committee condemned the word "traitor" as well as "scum" and "scab". A Labour spokeswoman directed The Staggers to the Labour website's leadership election page, but this merely stated that "any racist, abusive or foul language or behaviour at meetings, on social media or in any other context" will be dealt with. 

But with emotions running high, and trust already so low between rival supporters, such vague language is going to provide little confidence in the election process.