Great piece today by the Financial Times reconstructing the courtship of UK Treasurer Osborne to bring Mark Carney over to head the BoE. Here is an excerpt:
According to people who have spoken to him, personal issues had held him back from applying. “His wife is happy in Canada and his kids are all happy in school. Personal issues were looming quite large,” said one friend.
But for each problem raised by the Canadian, Mr Osborne found a solution, such was his desire to have an outsider with a reputation as a brilliant manager as well as policy maker.
Instead of Sir Mervyn King’s salary of £305,000, Mr Carney will receive £480,000 plus a 30 per cent pension contribution. He could serve only five years instead of the eight stipulated in law. And the BoE will also provide relocation and housing expenses, never cheap in central London, although the Treasury insists the BoE will not pay Mr Carney’s school fees.
The BoE’s flexibility with the relocation and housing allowances were a key swing factor. Though Mr Carney had previously earned banker’s pay levels while at Goldman Sachs, he has been relatively modestly remunerated at the Bank of Canada.
Read the full piece here