Mark Carney will be entitled to a $400,000 annual housing allowance when he becomes governor of the Bank of England, in addition to the more than $700,000 he will earn in salary.

Carney’s full compensation was confirmed at a recent meeting of the Bank of England’s non-executive directors, the bank said Wednesday in a statement posted to its website.

While Carney’s salary was reported when his appointment was announced last month, Wednesday marked the first time the Bank of England revealed that a housing allowance of 250,000 pounds, or $401,250, “had been offered to him prior to his appointment.”

The housing allowance is subject to a 45-per-cent tax, the bank said.

Carney will receive a salary of 480,000 pounds, or $770,400, as well as a cash allowance worth 30 per cent of his salary in lieu of a pension. As Bank of Canada governor, Carney’s salary falls within the range of $431,800 and $507,900.

Carney’s salary is considerably higher than that of the Bank of England’s current governor, Mervyn King, who receives 305,000 pounds, or $489,525. King, however, receives a pension allowance.

“The cost to the Bank of enrolling (Carney) in the now closed Pension Scheme previously available to the Governor and Deputy Governors would approximate to more than 100 per cent of salary,” the bank said.“This compares with the 30 per cent cash allowance in lieu of pension to which the next Governor will become entitled.”

On Nov. 26, Bank of England Chancellor George Osborne announced that Carney, currently the governor of the Bank of Canada, will become the first foreigner to lead the institution in its 318-year history.

Osborne called Carney “simply the best, most experienced and most qualified person in the world” to steer Britain through its ongoing economic challenges.

Carney’s appointment was a surprise to some after he made repeated denials that he was being courted for the job. In explaining the turn of events last month, Carney acknowledged that he had “been asked before” about the issue.

“It’s been an on-and-off process … Every time I’ve been asked it has been an ‘off’ process,” he told reporters.

Carney will continue on at the Bank of Canada until June 1, 2013. He assumes his post at the Bank of England on July 1.