FCA pay proposals are a cut by a different name. Here’s why that’s a big problem

The watchdog’s bonus scheme is being scrapped. But, as James Moore writes, Unite is concerned staff could end up 10 per cent worse off

FCA boss Nikhil Rathi is consulting on a new pay plan (Victoria Jones/PA)

The City watchdog’s new pay policy is proof positive that very clever people can do sometimes do very silly things.

With inflation set to top 5 per cent and labour shortages hitting the City of London almost as hard as they’re bashing companies which need lorry drivers or food processing workers, the Financial Conduct Authority (FCA) is proposing to impose a pay cut upon a substantial chunk of its staff.

This will be accomplished by slashing the bonus scheme and replacing it with “performance related pay”. Which is, that’s right, another bonus scheme. Just harder to get. And with a different name to make it look more palatable to outside observers.