UK central bank chief turns down pay rise

LONDON, June 2 (BestGrowthStock) – The Bank of England’s governor
has waived his right to a pay rise, his office said on
Wednesday, less than a month before the British government is
expected to announce deep spending cuts in an emergency budget.

Mervyn King, who chairs the bank’s interest rate-setting
committee, earns 305,368 pounds ($446,900) a year and last took
a pay rise, of 2.5 percent, in July 2009, according to the
bank’s annual report.

The bank said King had made a personal decision on the pay
rise and would not comment on his reasons for turning it down.

“In relation to 2010 and 2011, the governor has advised the
remuneration committee that he does not wish to receive
any increase in his salary,” the annual report said.

With Britain facing deep cuts to reduce a record budget
deficit, senior public sector workers have come under political
pressure to share the country’s pain.

Details of the coalition government’s spending plans will be
presented to parliament in an emergency budget on June 22.

Prime Minister David Cameron and his senior ministerial team
cut their own pay by five percent last month in what was seen as
a largely symbolic act that will pave the way for a period of
belt-tightening.

He has vowed to crack down on “crazy” pay packages for
senior public sector workers as part of wider measures to curb
government spending and reduce the deficit.

The Conservative election manifesto contained a pledge to
freeze pay for public sector workers next year, excluding the
one million lowest paid.

King also turned down a pay rise when he was reappointed for
a second term as governor in July 2008 during the global
financial crisis.

The governor was entitled to a new salary of between 375,000
and 400,000, plus an automatic yearly rise of 2.5 percent until
his term is due to end in June 2013, the bank’s annual report
said. He does not receive a bonus.

Stock Market Investing
(Reporting by Peter Griffiths)

UK central bank chief turns down pay rise