The Courting of Mark Carney by the BoE

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

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza