Mark Carney defends $1.3m BoE salary

8 February 2013

Mark Carney has defended the fact he will become the best-paid central bank governor in the Western world when he takes up his role at the Bank of England (BoE) later this year.

The current head of the Bank of Canada is scheduled to move to the top job at the London institution to replace Sir Mervyn King - who will have completed the maximum number of two five-year terms - in July.

Details of his remuneration package emerged recently and Andrew Tyrie, chairman of the Commons Treasury Committee, indicated Mr Carney's base annual salary of £840,000 ($1.3 million) seems "rather large" in comparison to his current wage at the Bank of Canada.

However, during a hearing at the Treasury Select Committee, Mr Carney - who will also receive a housing allowance of £5,000 per week - said his package is "equivalent" to Sir Mervyn's because he is not drawing a pension.

"I am moving from one of the cheapest capitals in the world to one of the most expensive," he added.

By Tony Aynsley

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