The final payout for Alison Rose, the former CEO of NatWest, remains uncertain as the bank takes into account the findings of ongoing investigations.
Decisions about her compensation will be determined based on these findings.
Thwaite’s Compensation and Role Transition
Howard Thwaite, who will be assuming the role of NatWest’s CEO for the next year, will receive a base salary of £1.05 million, slightly lower than Rose’s previous salary of £1.16 million.
Thwaite has the potential to earn an additional £2.6 million in bonuses, although this is also below the maximum bonus eligibility that Rose had.
His salary for the current year will be adjusted proportionately based on his tenure.
Rose’s Compensation Details
Alison Rose is currently slated to receive her fixed pay of £1.16 million and a fixed-share allowance of equal value distributed over five years, along with a pension, during her 12-month gardening leave.
However, these payments might be subject to adjustment depending on the outcome of the investigation.
Her potential maximum variable pay for the year, which amounts to £2.9 million, and unvested share awards from previous years, valued at approximately £850,000, could potentially be reclaimed as well.
Investigation and Remuneration Decisions
A spokesperson for NatWest Group stated that Rose is currently receiving her fixed pay in line with her contractual notice period while the independent investigation is ongoing.
No decisions about her remuneration will be made until the investigations are concluded.
Reasons for Rose’s Departure
Alison Rose stepped down as CEO of NatWest Group after disclosing that she had provided information to a BBC journalist, leading to an inaccurate report concerning the closure of former UKIP leader Nigel Farage’s account with Coutts.
Following her departure, Farage called for the resignation of NatWest’s board members as well.
Taxpayer Funding and Leadership Transition
Both Alison Rose’s and Howard Thwaite’s salaries will be partially covered by taxpayer funds, as the government owns 39% of NatWest due to its intervention during the Global Financial Crisis.
Upon Rose’s departure, NatWest Group’s chairman, Sir Howard Davies, expressed mutual consent between the board and Rose for her to step down.
He acknowledged her long-standing dedication to the bank.
Current Share Performance
At present, NatWest shares are trading at 223.5p, reflecting a 1.6p increase for the day.
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