REMUNERATION OF MERVYN KING

That this House welcomes the decision of Mervyn King to turn down a pay rise of nearly £100,000 at the beginning of his second five year term as Governor of the Bank of England, noting that Mr King opted to take an increase of 2.5 per cent. on his 2007-08 remuneration of £289,551 instead of accepting pay of between £375,000 and £400,000, as recommended by an external review of senior bank salaries; contrasts Mervyn King's rate of pay with that of Hector Sants, Chief Executive of the Financial Services Authority, who was paid a total of £661,948 in the most recent financial year, and the multi-million remuneration packages given out in the private sector; believes that Mervyn King's accrued pension rights at £179,200 per annum will be more than sufficient for a comfortable retirement; and further notes that happiness cannot be guaranteed by huge wealth and it is time to challenge the perceived correlation between income and status.