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FOS board shares £1.4m pay package; posts £818k surplus

by Michelle Abrego on Aug 13, 2013 at 09:57

FOS board shares £1.4m pay package; posts £818k surplus

The board of the Financial Ombudsman Service (FOS) shared a pay package of £1.4 million for the year ended 31 March 2013.

According to its audited directors’ report and financial statements, the FOS paid its nine executives, including pension and benefits, £1.4 million for 2013. This is a £120,067 increase from total pay for the year ended 31 March 2012 in which they were paid £1.32 million.

FOS chief executive Natalie Ceeney received an increase of around £20,000. Her 2013 pay package was £256,064 up from £236,444 in 2012.

The report said: ‘Salaries for members of the executive team are reviewed annually. Any increases reflect changes in responsibility, inflation, market movements and individual performance. Salaries of the chief executive, deputy chief executive and the principal ombudsman also take account of the judicial salary-scales.’

In its annual review published in May, the FOS said the number of new cases during the 12 months reached 508,881, up 92% on the 206,121 in 2011/12.

The raise was mainly attributed to payment protection insurance (PPI) claims, and the audited reports revealed the FOS recruited 922 permanent staff to work on PPI.

The organisation made a £818,000 surplus in 2013 before tax, which was an improvement on its unaudited figure of a £10.8 million deficit predicted in its review in May.

Ceeney (pictured) said: ‘The executive team, ably guided and supported by our board has significantly developed our organisation over the last year. The most profound change, of course, was the decision to build our capacity to handle the influx of new PPI cases. We have been careful to develop our organisation responsibly, ensuring that we maintain quality at the heart of what we do, and ensuring that we spend money wisely.

The FOS was also reviewed by the National Audit Office in January 2012, which said that its costs have grown significantly more slowly than its caseload.

‘The Ombudsman is funded by the financial business that consumers complain about, and we know how important it is to control costs and provide good value for money - now more than ever,’ the report said.

Last month the FOS reported a 179% increase in the number of complaints it received in the first quarter of 2013/14, again largely due to PPI.

16 comments so far. Why not have your say?

David Craik

Aug 13, 2013 at 10:15

Bloody marvelous!

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Hur Reebigballz

Aug 13, 2013 at 10:22

Perhaps the surplus could be spent on financial services education for the staff.

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Anitaki

Aug 13, 2013 at 10:23

No wonder she's grinning in the photo

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Chris Miller

Aug 13, 2013 at 10:32

Basically, any old reason is cited to justify burrowing their collective snouts further into the bottomless trough of cash, pillaged from the powerless financial community.

I am totally perplexed as to why someone on £250k+, operating a public body has not had their pay frozen.

Obviously we are NOT all in it together.

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PAUL WOOLLEY

Aug 13, 2013 at 10:39

So an 8.5% pay increase, Why ?

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Phil Sipocz

Aug 13, 2013 at 10:46

Almost an 8.5% increase!

I'm glad we're "all in it together" in these times of austerity.

Nice work if you can get it!

"Any increases reflect changes in responsibility, inflation, market movements and individual performance"

I think i'll advise my clients that i'm going to increase my fees by 8.5% due to the above legitimate reasons. Doesn't mean i have to do anymore work for them does it?

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Blue Eyed Monster

Aug 13, 2013 at 10:49

@Chris,

Thats the rub.

She is not in the ACTUAL public sector.

Both the FCA and the FOS are private companies doing a public job. They should actually be paid for by the taxpayer.

Both are above the law, and parliament. They can pay themselves what they want knowing the budget is unlimited (donations by confiscation).

Walt Disney could not have done better!

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Usually found sitting on the fence

Aug 13, 2013 at 11:09

As crazy as the pay increase was, I just wonder whether the auditor may need to be changed (or have I missed something? "including pension and benefits, £1.4 million for 2013. This is a £120,067 increase from total pay for the year ended 31 March 2012 in which they were paid £1.32 million" 1.4 million less 1.32 million does not equal £120k...

I can see why this would grate on the nerves of those funding their whimsy, but I can equally see how they can justify this to other parties. Doesn't make it right, but if any adviser saw a 92% increase in their workload, they would expect an increase in renumeration...

To bring in accountability, it should be part funded by taxes, part by product levies and part by professionals within the industry - In my opinion.

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Chris D Stapleton

Aug 13, 2013 at 11:47

8.5% increase eh? so easy to spend other peoples money after all the government do it all the time!!

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Charles Rickards

Aug 13, 2013 at 14:03

And I guess we will be funding the redundancy payments for the 922 permanent staff, when the PPI gravy train ends, unless the next meal ticket for the claims handling industry has fallen in their laps!

All of these bodies should be fully accountable and funding them should be shared by all interested parties.

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James Clancy

Aug 13, 2013 at 14:57

HI Dave Ed and Nick average salary in real terms has reduced by 5%.

How can this organisation justify giving the chief executive officer £20,000 rise

I am sure people would love to hear you comments.

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Robin Hood

Aug 13, 2013 at 15:10

Bastards!

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Londoner

Aug 13, 2013 at 21:12

She has a way to go to catch up with Mark Neale at FSCS (£300k package)

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Ian Lees

Aug 13, 2013 at 21:14

Clearly acting as a protectionsist organisation for banking activites has its rewards - as protection rackets work for criminals. Interestingly the FOS has asked me to supply them with a clients "new Terms of business " which they did not sign - we terminated them as clients - and the three adjudicators and one ombudsman to date are holing a forged Terms of Business - which ahs not been agreed by me and like Scottish Widows the clients used my name - to add credibility to their forgery of my signature ( see previous forged signature on my Annual Appraisal at Scottish Widows 1993 - some copies still available ) . Secondly Natalie Cenney and her employees are unaware that consumers cannot be given commissions from providers - yet the latest " mbudsman " has asked us to provide him with further information form solicitors - terms of business etc., Natalie Ceeney and her pay . . . . .Worth every penny ? So where did ms Natalie Ceeney's . . . pay come from ?

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John Bees

Aug 19, 2013 at 15:22

This clearly the new sport, rather than fox hunting!!

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Ian Lees

Aug 19, 2013 at 19:06

At least drug pushers and traffickers get caught . . and imprisoned it appears the the reward for failure of Natalie Ceeney . . .and her adjudicaors and ombudsmen and women is . . . . I think I would prefer fox hinting they are sly . . .but ethical . . .

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