The Bank of England, which has been chastised for underestimating the threat of rising inflation, paid out more than £23 million in bonuses to its employees last year, according to the Observer.
With over 4,260 employees receiving performance awards, this bonus pot was at its highest level in at least two years.
The bank’s governor, Andrew Bailey, was widely chastised earlier this year after telling British workers that they should not demand large pay increases because inflation must be kept under control.
The government has charged the bank with meeting a 2% inflation target, but the current rate is 9.4%.
“Bonuses should only be paid for extraordinary performance,” said Lord Sikka, emeritus professor of accounting at Sheffield University, “but there is no evidence the bank has delivered even an ordinary performance.”
They are completely unjustified.”
With the exception of Bailey, who was appointed in March 2020, all employees at the bank are eligible for a discretionary annual performance award.
According to bank officials, the vast majority of their employees do not work on monetary policy.
