The board of the taxpayer-backed bank, NatWest Group, is keen to finalize the terms of Dame Alison Rose’s departure before releasing its quarterly results later this month.
Share Awards Reevaluation
NatWest Group is making preparations to revoke share awards and incentives totaling millions of pounds designated for its former CEO, Nigel Farage, due to an investigation into the closure of his bank accounts.
NatWest, an organization majority-owned by the government, is eager to address the matter of Dame Alison Rose’s compensation before announcing its third-quarter results on October 27.
Over the weekend, City sources stated that Sir Howard Davies’ board had not taken a decision and cautioned that the bank’s response could be delayed until November due to the process’s complexity.
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One individual expressed a desire to release the information by the end of the following week, though they recognized that such a deadline was “extremely ambitious.”
Additionally, they stated that the ultimate result of their deliberations would remain uncertain until the bank’s directors formally adopt their decisions.
The CEO’s Compensation
Since her departure in late July, Dame Alison has been receiving her annual £2.4 million package, including a pension contribution, base salary, and a share-based fixed-pay allowance, as per a public filing by NatWest in August.
She receives a pro rata portion of long-term share awards and a £2.9 million annual bonus to complete her £5.3 million compensation package.
She also possesses approximately 2.5 million unvested shares in NatWest, valued at £5.65 million as of Friday’s closing share price of 225.9p. This theoretically amounts to nearly £11 million. However, due to Dame Alison’s departure in mid-2023, she would have been eligible for just over half of the £2.9 million in annual variable pay.
According to an insider with knowledge of the situation, it is “improbable” that she will receive discretionary compensation for 2023. Although it could lead to a court conflict, the bank believes it is “extremely probable” that they will try to revoke the unvested shares.
The remaining £2.4 million owed to Dame Alison during her 12-month notice period was also in doubt, although it remained unclear whether it would be reduced.
She will consult the government on her leaving package in two weeks.
Over the weekend, a Whitehall insider said Dame Alison will receive “the bare minimum possible compensation.”
Dame Alison voluntarily resigned from the bank, known for its proficient reconstruction efforts fifteen years after its £45.5 billion taxpayer rescue. She did so following an admission that she had provided inaccurate information to a BBC journalist regarding the closure of Mr. Farage’s Coutts accounts.
Mr. Farage had moved his personal banking services to Lloyds, the UK’s largest main street lender.
Sir Howard will step down next year, and Ocado Group’s Rick Haythornthwaite will take over as chairman.
