Staff bonuses and performance related pay

Summary

The requester asked for details on staff bonus and performance-related pay schemes, including specific payment lists for the last six tax years. The Isle of Man Financial Services Authority confirmed it does not operate a formal bonus scheme but disclosed the existence of a discretionary performance-related incentive for 2023/24, while withholding individual payment data due to privacy exemptions.

Key Facts

• The Authority does not operate a contractual staff bonus or performance-related pay (PRP) scheme.
• A discretionary non-consolidated performance-related incentive (PRI) was introduced in April 2023 for the 2023/24 financial year.
• PRI allocation is decided by a moderation panel comprising the CEO and Senior Steering Group members.
• There is no commitment to continue PRI payments in future years as the strategy is reviewed annually.
• Individual staff names, job titles, and specific payment amounts were withheld from the response.

Data Disclosed

• 2025-02-18
• 2025-03-14
• April 2023
• 2023/24
• 27 February 2025
• 6 tax years
• s25(b)(i)&(ii)

Exemptions Cited

• Absolutely Exempt Personal Information - s25(b)(i)&(ii)

Original Request

The information that I require is - 1. Does the public authority operate any staff bonus and/ or performance related pay schemes?; and 2. If the public authority does operate a staff bonus scheme and/or performance related pay scheme, a copy or copies of such schemes or hyperlinks to such schemes; and 3. A list showing all payments made to staff by way of staff bonuses and/or performance related pay in the last 6 tax years showing the staff members job title, name and the amounts paid to such persons individually in each of the years referred to; and 4. The names of all persons who authorised any or all of the payments referred to in 3. above together with a hyperlink or hyperlinks to their legal authority to do so; and 5. Hyperlinks to the public authority's budgets for the tax years referred to showing where in the budgets provision was made for the bonus payments and/or performance related pay referred to.

Data Tables (1)

Data Tables (reformatted)

Full Response Text

Isle of Man Financial Services Authority PO Box 58, Finch Hill House, Bucks Road, Douglas, Isle of Man, IM99 1DT Tel: +44 (0)1624 646000 Website: www.iomfsa.im

Our ref: 4450241 13 March 2025

Dear ###

We write further to your request, received 16 February 2025, which states:

"The information that I require is -

1. Does the public authority operate any staff bonus and/ or performance related pay schemes?; and

2. If the public authority does operate a staff bonus scheme and/or performance related pay scheme, a copy or copies of such schemes or hyperlinks to such schemes; and

3. A list showing all payments made to staff by way of staff bonuses and/or performance related pay in the last 6 tax years showing the staff members job title, name and the amounts paid to such persons individually in each of the years referred to; and

4. The names of all persons who authorised any or all of the payments referred to
   in 3. above together with a hyperlink or hyperlinks to their legal authority to do so; and

5. Hyperlinks to the public authority's budgets for the tax years referred to showing where in the budgets provision was made for the bonus payments and/or performance related pay referred to."

While our aim is to provide information whenever possible, in this instance the public authority does not hold or cannot, after taking reasonable steps to do so, find some of the information that you have requested. Questions asked with the FOI request are about bonus and performance related pay schemes, which the Isle of Man Financial Services Authority (‘the Authority’) do not operate. The Authority does include elements of performance related incentives, of which information is being provided. I have detailed below the information that is held.

1. Does the public authority operate any staff bonus and/or performance related pay schemes?

All members of staff at the Isle of Man Financial Services Authority (“the Authority”) are employed on individual contracts that do not include any set provision for bonus payments or performance-related pay (“PRP”) schemes. Information confirming this approach was published on 27 February 2025 as part of a written answer to a Tynwald question.

As a Statutory Board of Tynwald, the Authority’s compensation strategy is determined by its Board independently from central Government. This ensures the Authority retains the flexibility to attract and develop the requisite talent to discharge its regulatory duties.

The compensation strategy is reviewed annually by the Board’s Human Resources and Compensation Committee (“HRCC”). Any changes recommended by the HRCC must be approved by the full Board and funded from within the budget constraints set by Treasury.

While the Authority does not operate a contractual bonus or PRP scheme, it was agreed in April 2023 that pay awards for the financial year 2023/24 would include a small element of non-consolidated performance-related incentive (“PRI”) to recognise and incentivise continuing high performance. PRI is allocated at the discretion of a moderation panel, comprising the Chief Executive Officer and members of the Senior Steering Group, following the annual performance and rating review of all permanent members of staff.

There is no commitment in place to continue PRI payments in the future. The compensation strategy is reviewed afresh each year in line with the overall budgetary position.

1. If the public authority does operate a staff bonus scheme and/or PRP scheme, a copy or copies of such schemes or hyperlinks to such schemes.

The Authority does not operate a contractual staff bonus or PRP scheme, however in April 2023 the Authority introduced an element of non-consolidated PRI which was subsequently applied in the 2023/24 financial year to members of staff achieving high standards of performance as determined by the moderation panel. This PRI element is discretionary and does not form a contractual obligation. As stated above, there is no commitment in place to continue PRI payments in the future and any PRI will be reviewed annually with consideration given to the overall budgetary position.

1. A list showing all payments made to staff by way of staff bonuses and/or PRP in the last 6 tax years showing the staff members job title, name and the amounts paid to such persons individually in each of the years referred to.

Absolutely Exempt Personal Information - s25(b)(i)&(ii)

While our aim is to provide information whenever possible, in this instance we are unable to provide some of the information you have requested because it is absolutely exempt under section 25 of the Act (absolutely exempt personal information). The reasons why that exemption applies are that:

• The Isle of Man Financial Services Authority is satisfied that the information amounts to personal data of which you are not the data subject; and
• The Isle of Man Financial Services Authority is satisfied that disclosure of the information would contravene one of the data protection principles as set out at Article 5 of the General Data Protection Regulation as it applies in the Isle of Man pursuant to the Data Protection (Application of GDPR) Order 2018, namely that the Isle of Man Financial Services Authority can only disclose the information where it would be fair, lawful and meet one of the conditions for lawful processing in Article 6 and in this case, none of those conditions have been met.

To supply the information broken down as requested would potentially identify individuals.

Supplied below is information relating to the PRI payments awarded, banded by paygrade for the financial year 2023/24.

The element of PRI, referred to in Q2, applied in 2023/24 is shown in the table below:

Grade Total PRI (£) No. of staff CEO and Heads of Division 17,416.36 5 Senior Manager and Technical Grades 21,135.40 13 Manager 20,847.19 21 Assistant Manager 10,953.43 11 Officer 2,539.90 5 Total 72,892.28 55

It is intended to apply an element of PRI for 2024/25. Figures cannot be provided as staff performance reviews and moderation panel sessions have yet to be concluded.

The rating of performance against goals and objectives was introduced from April 2023 to assist with staff development and help drive and monitor progress towards a staff member’s contribution to the Authority’s objectives. This process remains separate from any decision, which remains fully discretionary and sits with the Board, following HRCC recommendation, to award a Performance Incentive in any given year. Prior to April 2023, no payments were made that contained elements of PRI.

1. The names of all persons who authorised any or all of the payments referred to in 3. above together with a hyperlink or hyperlink to their legal authority to do so.

The Compensation Strategy is agreed by the HRCC and approved by the Board. The Terms of Reference for HRCC state:

The HRCC shall review and monitor the implementation of the Authority’s compensation philosophy and related policies, proposing such changes as seem desirable, and making recommendations, if any, to the Board.

The practical implementation of the compensation strategy is the Authority’s CEO acting in her capacity of the Accountable Officer as per Section A.6 of the Isle of Man Government’s Financial Regulations.

‘A.6.4. The Accountable Officer is the overall Budget Holder for their designated body and must act within the limits of any delegated authority of the Minister or Board. However, in the absence of any such formal delegated authority, the Accountable Officer will have the authority to authorise all financial transactions within and on behalf of that designated body.’

1. Hyperlinks to the public authority’s budgets for the tax year referred to showing where in the budgets provision was made for the bonus payments and/or PRP referred to.

Any ad-hoc PRI element of pay is funded from the pay budget. There is no additional or specific provision for PRI. The Authority’s budget setting, including the pay budget, is subject to the Treasury budget setting process, undertaken annually. The Authority’s budget is published annually in the Treasury Pink Book.

Treasury Pink Book 2024/25 Treasury Pink Book 2023/24 Treasury Pink Book 2022/23 Treasury Pink Book 2021/22 Treasury Pink Book 2020/21 Treasury Pink Book 2019/20

Please quote the reference number 4450241 in any future communications.

Your right to request a review

If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post.

An electronic version of our complaint form can be found by going to our website at https://services.gov.im/freedom-of-information/Review . If you would like a paper version of our complaint form to be sent to you by post, please contact me and I will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded.

If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or 2. Whether we are justified in refusing to give you the information requested.
In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another

form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision. More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im. Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about freedom of information requests can be found at www.gov.im/foi.

I will now close your request as of this date.