RBS owner NatWest Group to reinstate bonuses for CEO and finance director
Reading time: 1 minute
NatWest Group CEO Alison Rose
NatWest Group, the owners of Royal Bank of Scotland (RBS), is set to reinstate bonuses for its CEO and finance director for the first time since the financial crisis.
The banking group’s board has concluded that “now is the appropriate time for NatWest Group to transition to a more market-standard remuneration model”, the directors’ remuneration report for 2021 states.
“[We] believe that executives should be incentivised using a structure that balances both short-term and longer-term performance, while maintaining our focus on prudent risk management,” the report states.
“We are, therefore, proposing that our current long-term incentive (LTI) construct is replaced by a more widely accepted and competitive construct based around annual bonus plus Restricted Share Plan (RSP) awards.”
The banking group has not paid cash bonuses to executives since the height of the financial crisis in 2007.
NatWest Group CEO Alison Rose received total remuneration of £3.59 million in 2021, up from £2.62 million in 2020. Finance director Katie Murray received £1.61 million, down slightly from £1.62m in the previous year.
Under the new pay policy, Ms Rose could receive as much as £4.7 million for 2022, rising to £5.2 million for 2023, if the share price remains stable.
Share this article:
Subscribe to our newsletter to not miss articles like this one:
SUBSCRIBE
