NatWest Bonus Withhold: In a strategic maneuver, NatWest has unveiled its plan to withhold approximately £7.6 million ($9.3 million) in bonuses and awards from its former CEO, Alison Rose. This decision comes on the heels of a thorough review into the “debanking” of Nigel Farage, the former leader of the Brexit party, conducted by the law firm Travers Smith.
The initial findings of this review, released on October 27 alongside NatWest’s quarterly results, pointed to “serious failings” in the bank’s treatment of Farage, leading to a political and public backlash. The aftermath of this incident ultimately cost Rose her position after a career spanning more than 30 years at the banking institution.
According to NatWest’s recent announcement, no bonus or variable remuneration will be awarded to Ms. Rose in respect of service during the year 2023. While the bank did not find any misconduct on her part, she did not attain “good leaver” status under the terms of its share award plan.
Also Read: NatWest CEO Resigns After Disclosing Nigel Farages Financial Details
In a statement responding to the bank’s announcement, Rose expressed her satisfaction that NatWest confirmed no findings of misconduct against her. She also confirmed her acceptance of the terms of the settlement agreement, aligning with NatWest Groups Remuneration Policy, effectively bringing this matter to a close.
This move by NatWest is seen as an attempt to draw a line under the controversial episode involving Farage. The bank’s private subsidiary, Coutts, faced criticism after it was revealed in July that Farage was being dropped as a customer, partly due to an internal committee’s decision that his views did not align with the lender’s own. This incident triggered widespread political condemnation and prompted the government to expedite reforms aimed at ensuring banks do not terminate services based on lawfully held political views.
Rose’s resignation came after she admitted to a “serious error of judgement” in discussing Farage’s relationship with the bank during an interview with a BBC journalist. The political fallout made her position untenable, according to NatWest’s outgoing chairman, Howard Davies. This entire episode underscores the intricate intersection of finance, politics, and corporate governance, highlighting the challenges faced by major institutions in navigating such complex terrain.
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Who was the previous CEO of NatWest?
Dame Alison Rose, the CEO of Nigel Farage, has resigned after confessing to being the source of a misleading BBC report. She also admitted to breaching client confidentiality by suggesting that the closure of Farage’s accounts was due to commercial reasons rather than political ones. Her resignation comes as a result of these actions.