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Glass Lewis drums up rebellion against NatWest chief’s £5m payout 

Natwest saw net interest margin fall below 3 per cent but profitability remains good across the year

One of the world’s biggest shareholder representation groups is urging investors in NatWest to rebel against an over £5m payout to the bank’s boss.

Alison Rose, the bank’s chief, is set to net the first significant executive pay upgrade since NatWest fell back into private hands last month for the first time since it was bailed out in the financial crisis in 2008.

Glass Lewis is recommending members vote against a 25 per cent bonus uplift for Rose and a 43 per cent rise for the bank’s finance chief Kaite Murray at today’s annual general meeting.

“We are concerned by the increase in overall incentive opportunity and the introduction of an [Restricted Share Plan] absent a compelling strategic rationale for this type of award structure,” Glass Lewis said.

NatWest has been given greater freedom to boost its executives’ remuneration since the government sold a tranche of shares in the bank that tipped its stake below 50 per cent.

The bank, formerly known as RBS, defended the bonus boost for bringing Rose and other C-suite executive’s pay in line with that offered by competitors.

NatWest rounds off UK banks’ first quarter earnings season tomorrow.

It is expected to continue a trend of Britain’s biggest lenders warning of an uptick in defaults triggered by an intensifying cost of living squeeze.