- Wednesday, October 16, 2024
Former NatWest Chief Executive Officer, Alison Rose, will not receive £7.6 million ($9.3 million) in bonuses and share awards, according to the bank. This is due to the fact that "good leaver" status does not apply under share-plan rules. Therefore, Rose will only receive the fixed elements of her pay for the remainder of her notice period.
In July, Rose resigned following a conversation with a journalist regarding the accounts of former Coutts customer and Brexit campaigner, Nigel Farage. This incident caused a political drama that impacted the British bank, which is 40% owned by the U.K. government.
As per her contract, Rose was set to receive £2.3 million for 2023, with half as a salary and the other half as a fixed-share allowance released annually over five years. Additionally, she was entitled to a pension allowance of 10% of her salary and agreed benefits outlined in the remuneration policy, as stated by the bank in August.
NatWest confirmed on Friday that Rose will be paid the fixed elements, totaling £1.7 million, for the remaining period of her notice, which concludes on July 26 next year.
The Departure and Consequences
NatWest, formerly known as RBS, announced that Alison Rose, their ex-executive, will not receive her share awards, valued at GBP4.7 million, due to vest after her departure. In addition, she will not be entitled to any bonus or variable remuneration for her service in 2023. Had Rose continued her tenure for the entire year, these incentives would have amounted to GBP2.9 million.
The bank has assured that she will receive financial assistance to cover her legal fees, capped at GBP395,000 plus tax. Additionally, she will receive GBP60,000 plus tax for outplacement support.
NatWest explicitly stated that no findings of misconduct were made against Rose.
A comprehensive independent review was conducted in October, affirming the legality of terminating Nigel Farage's bank account. The report emphasized that this decision stemmed primarily from commercial considerations. Farage had previously alleged that his political views played a role in Coutts dropping him as a client. However, the bank acknowledged several "serious failings" concerning Farage's treatment.
As of now, Rose is serving her 12-month notice period and is restricted from accepting new appointments.
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