New Model Adviser - For Professional Investors

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

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

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Comment & analysis

Asset managers: 'There is going to be a distribution revolution'

1 Comment Play Asset managers: 'There is going to be a distribution revolution'

In footage not used in our original CEO tapes videos, five CEOs discuss how distribution will change in the future. Will 'distribution' be revolutionised by technology the same way that Spotify changed music or the Kindle changed publishing?