By Ed Conway, Economics Editor
Mark Carney, the incoming Bank of England Governor, will receive an annual pay package equivalent to £874,000, the Bank confirmed today.
Among his benefits will be a £250,000 annual accommodation payment the Canadian central bank chief insisted upon when he accepted George Osborne's offer to take over from Sir Mervyn King.
The pay package, which also includes a £480,000 salary and a further cash sum of 30% of salary in lieu of pension, is significantly higher than the £305,000 salary Sir Mervyn currently receives.
However, the Bank said that Sir Mervyn benefits from membership of the Bank's lucrative final salary pension scheme, and that it would have cost an equivalent sum to Mr Carney's salary and cash pension sum to have given him similar remuneration benefits to Sir Mervyn – although this is before one factors in the accommodation allowance.
But given Sir Mervyn's pension pot is already full, and therefore no further payments are being made to it, the total annual cost to the Bank of the new Governor will be significantly higher than they are currently.
On top of those payments, Mr Carney and his family will also have their relocation costs paid for by the Bank – although these have yet to be calculated.
He is due to start his new role at the end of June when SIr Mervyn officially retires.
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