NatWest scraps over £7.5 million of former CEO’s payout following forced resignation
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Following the scandal that led to the resignation of NatWest’s former chief executive, Alison Rose, the bank has scrapped more than £7.5 million of her payout.
Details of the scandal and consequences for NatWest’s former chief executive
The scandal revolved around the shutdown of Nigel Farage’s bank accounts, and the situation was later linked to multiple leaders of the Conservative party, who alleged that they were being denied bank accounts, and that their existing accounts were being deleted by major banking institutions.
With NatWest being one of them, the bank admitted to the wrongdoing when it comes to Farage. However, the Financial Conduct Authority (FCA) continued the investigation to get to the bottom of the situation.
According to the bank’s board, around £4.7 million worth of future unvested share awards would not be paid out, due to the former CEO’s resignation. In addition, Rose will not receive a bonus or share-based pay awards this year for £2.8 million.
NatWest commented on the matter, stating that after the announcement of Rose’s departure from the role by mutual agreement, it was decided that good leaver status is not applicable under the relevant share lan rules. The bank added that no finding of misconduct was made against Ms Rose by NatWest Group.
NatWest and Rose have reached a settlement
When combined, the lapsed unvested share awards, compensation for the year, and bonus bring the total to £7.58 million. However, Rose will still receive a pay package of 2.4 million GBP after previously receiving 5.2 million GBP last year. After that, Rose will be forced to lose millions in unvested share awards. Even so, she is still eligible to receive another 850,000 GBP next April, which will also come in share-based awards. This comes from the fact that her contract will not officially end until July 2024.
NatWest Group also shared that they will pay up to £546,000 to Rose’s legal fees and support while she looks for another job.
Rose herself commented on the development, stating that she is pleased that NatWest Group has confirmed that it did not find any misconduct made against her. She also confirmed acceptance of the terms of the settlement agreement, even stating that the agreement is in line with the bank’s remuneration policy. With that, the matter will finally be closed.
