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NatWest Group to Cancel Bonuses and Share Awards for Former CEO

NatWest Group, which is backed by taxpayers, is reportedly making plans to cancel millions of pounds in bonuses and share awards set aside for its former chief executive, Dame Alison Rose. This move comes after an investigation into the closure of Nigel Farage’s bank accounts. The government, as the largest shareholder in NatWest, is keen to resolve Dame Alison’s exit terms ahead of the bank’s quarterly results, which are scheduled to be announced later this month.

The board of NatWest, led by Sir Howard Davies, has not yet made final decisions regarding the issue. The complexity of the process might cause a delay in the bank’s response, possibly pushing it into November. However, there is a desire to disclose the details as soon as possible, with a target of next week. Nonetheless, until the bank’s directors finalize their decisions, the outcome of the deliberations remains uncertain.

Recent reports indicate that Dame Alison has been receiving her annual £2.4 million package since leaving her position in July. This package includes salary, pension contribution, and a share-based fixed-pay allowance. Additionally, she could be eligible for a pro rata portion of the £2.9 million annual bonus and long-term share awards. She also holds approximately 2.5 million unvested shares in NatWest, valued at £5.65 million.

Considering that Dame Alison departed midway through 2023, it is unlikely she will be awarded any discretionary pay for that year. It is highly probable that the bank will attempt to cancel the unvested shares, although this decision could lead to a legal challenge.

This is where the AI legalese decoder can be helpful. With the complexity surrounding the cancellation of bonuses and share awards, an AI-powered tool can assist in interpreting and decoding the legal jargon and intricacies of the situation. It can provide a clear understanding of the legal implications and potential challenges, helping stakeholders navigate the process more efficiently.

The government is expected to be consulted on the final terms of Dame Alison’s exit package in the next two weeks. Whitehall insiders have expressed the opinion that she should receive the minimum possible payoff. Dame Alison left the bank, where she was recognized for her competent rebuilding work, after admitting to providing inaccurate information to a BBC journalist about the reasons behind the closure of Nigel Farage’s Coutts accounts.

A report analyzing the exit process for Mr. Farage and the disclosure of information about his banking arrangements was submitted to the NatWest board by the law firm Travers Smith earlier this month. A second phase of the investigation, focusing on the closure of Coutts accounts over the past two years, is set to be completed by the end of this month.

NatWest has stated that the findings of the independent review and the bank’s response will be considered by the board and published in due course. The bank has refrained from commenting on any speculation regarding Dame Alison’s exit package. Similarly, a spokesperson for Dame Alison declined to comment on the matter.

Dame Alison, who was the first woman to lead one of Britain’s major banks, initially attempted to resolve the disagreement with Mr. Farage by apologizing and forgoing her bonus for this year. However, when Downing Street expressed a lack of confidence in her leadership, the bank called an emergency board meeting that resulted in her departure being confirmed.

In light of these developments, Mr. Farage has transferred his personal banking arrangements to Lloyds, the largest high street lender in Britain. Sir Howard Davies is set to step down next year, with Rick Haythornthwaite, the former chairman of MasterCard and current chair of Ocado Group, taking his place.

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