The Bank of England confirmed Wednesday that outgoing Bank of Canada Mark Carney will receive a healthy raise over his predecessor as head of the bank, and a substantial housing allowance.
The non-executive directors of the British central bank, who determine the remuneration of its governor and deputy governors, said today that Carney will be paid £480,000 ($770,000) in annual salary when he takes up his appointment on July 1, 2013.
He will also be able to receive another 30% of his salary in cash in lieu of receiving enrollment in its now-closed pension scheme; and, an annual £250,000 ($400,000) housing allowance.
The directors note that while Carney’s salary is considerably higher than the salary of the current governor, which is £305,000 ($490,000), “the cost to the bank of enrolling him in the now closed pension scheme previously available to the governor and deputy governors would approximate to more than 100% of salary.”
Additionally, it notes that accommodation allowance will be subject to tax at 45% and any social security contributions that the bank may be required to deduct.