In a stunning twist of fortunes, Alison Rose, the former chief executive of NatWest, is set to pocket a cool £2.4 million ($3 million) following her resignation over a scandal involving misleading information about Nigel Farage. The earnings breakdown, revealed in a filing on Wednesday, includes her salary of £1.16 million, a fixed-share allowance of an equivalent amount in NatWest shares to be released over five years, and a pension allowance that equates to 10% of her salary, or £116,000. The bank, however, remained mum about whether she will receive any part of her bonus during her 12-month notice period, during which she is restricted from taking up any new roles.
Despite NatWest’s U.K.-listed shares plummeting 16% this year, Rose was generally lauded for her leadership of the bank, which is still partially government-owned, prior to her resignation. Her departure was triggered by her admission that she was the source of a BBC story stating that Farage’s account was closed because he fell below the wealth threshold for Coutts, a NatWest subsidiary catering to high-net-worth individuals. However, she conveniently left out the detail that Farage, the former leader of the UK Independence Party, was deemed not to align with the values of Coutts, as per a document Farage later made public.
NatWest CEO Resignation Results in £2.4 Million Payout
Alison Rose’s Departure and Financial Settlement
Following a controversial resignation, former NatWest CEO, Alison Rose, is set to receive at least £2.4 million ($3 million) as per a recent filing. The payout comprises her annual salary of £1.16 million, an equivalent amount in NatWest shares, which will be released over five years, and a pension allowance amounting to 10% of her salary, which is £116,000, according to the bank’s statement.
Restrictions and Uncertainty About Bonus
NatWest has not yet disclosed whether Rose will receive any part of her bonus. During her 12-month notice period, Rose is prohibited from taking on any new roles. The period of this transition comes in a challenging year for NatWest, with its UK-listed shares witnessing a 16% drop.
Rose’s Tenure at NatWest
Despite her controversial exit, Rose’s tenure as CEO was generally well-received, particularly her management of the bank still partially under government ownership. Her resignation was triggered by a misleading information leak about Nigel Farage, a former UK Independence Party leader. She had claimed Farage’s account was closed due to falling below the wealth threshold for Coutts, a NatWest subsidiary catering to high-net-worth individuals.
The Controversial Leak and the Successor
Rose failed to mention a crucial detail from a Coutts document, later publicly released by Farage, stating that the political leader "did not align with our values." Following Rose’s departure, Paul Thwaite, former CEO of the commercial and institutional business, will step in as her successor. Thwaite will receive a £1.05 million salary and a fixed share allowance of the same amount. He is also eligible for annual bonuses based on company performance.
Takeaways
This situation underscores the importance of transparency and integrity in leadership roles, particularly in the banking sector. Additionally, it raises questions about executive compensation packages, especially when the departure is under controversial circumstances. The impact on NatWest’s reputation and future performance remains to be seen.
