Portrait of George Osborne
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George Osborne on Mark Carney

Appointed Governor (strong)

TL;DR

George Osborne, as Chancellor, personally appointed Mark Carney as the Governor of the Bank of England in 2013.

Key Points

  • The Chancellor, George Osborne, announced Mark Carney's appointment as the next Governor of the Bank of England on 26 November 2012.

  • Osborne wrote to Carney, in his capacity as Chair of the Financial Stability Board, in November 2014 regarding concerns about bank remuneration and fixed pay.

  • Carney was set to take up the role on 1 July 2013, succeeding Sir Mervyn King, who would continue until 30 June 2013.

Summary

George Osborne, during his tenure as Chancellor of the Exchequer, was directly responsible for appointing Mark Carney as the Governor of the Bank of England to succeed Sir Mervyn King. The appointment, announced in November 2012, marked a significant move by the then Chancellor, who had previously advocated for new arrangements regarding the appointment process, such as an eight-year term and an open application process. In the end, Osborne went back on these stated principles to secure Carney for the role.

Despite his stated desire for an open application process and a fixed eight-year term for future governors, Osborne successfully wooed Carney, who was the Governor of the Bank of Canada, into accepting the position with a five-year term. Furthermore, the Chancellor was noted for offering increased remuneration and other benefits to secure the appointment. This action of appointing Carney despite abandoning previous stated criteria for the role became a point of observation regarding the Chancellor's flexibility on policy for key appointments.

Frequently Asked Questions

George Osborne, as the Chancellor of the Exchequer, was the minister responsible for appointing Mark Carney as the Governor of the Bank of England. He made the official statement to the House of Commons announcing the appointment in November 2012.

No, Osborne reportedly went back on his own stated commitments regarding the appointment process for the Bank of England governor when securing Mark Carney. This included moving away from an advertised application process and confirming a fixed eight-year term.

In November 2014, George Osborne wrote to Mark Carney, who was then Governor of the Bank of England and Chair of the Financial Stability Board. The letter outlined the Chancellor's concerns about rising fixed pay in the banking sector following the EU's 'bonus cap'.