State-backed NatWest Group to dish out £300m in bonuses
State-backed NatWest Group is set to dish out nearly £300m in bonuses as government prepares to begin dripping the lender back into majority private ownership this year.
The board of the lender is proposing the first year on year hike in bonuses since the firm’s bailout during the financial crisis in 2008, Sky News’ Mark Kleinman first reported today.
A source familiar with the payouts told Sky News that the bonus pool would rise to 40 per cent above 2021 levels, although still below the amount paid out in 2020.
Natwest boss Alison Rose will accept an annual incentive award that the board has agreed to pay her, according to another source.
The Treasury retains 52 per cent of the firm but is expected to begin feeding its stake back into majority private ownership through a trading plan announced last year.
The lender has not paid bonuses to executive directors for year after running into controversy under one of Ms Rose’s predecessors, Stephen Hester, over the quantities dished out to bosses.
The Treasury is notified annually about NatWest’s pay plans, although it does not typically intervene.