NatWest said on Friday it is planning to cancel about £7.6 million in pay and awards for its former CEO Alison Rose following a law company’s review into the “debanking” of former Brexit party leader Nigel Farage.
“Following the announcement that Ms Rose stepped down from her role by mutual agreement, it has been confirmed that good leaver status is not applicable under the relevant share plan rules,” said NatWest.
“There is no change to the vesting schedule of her awards; any awards due to vest after her cessation of employment on 26 July 2024 will lapse.
“The current value of the unvested share awards that will lapse is £4,711,491. No finding of misconduct has been made against Ms Rose by NatWest Group.
“In addition, no bonus or variable remuneration will be paid to Ms Rose in respect of service during 2023.
“Had Ms Rose remained in role as Group Chief Executive for all of 2023 then under the approved DRP her maximum variable pay opportunity would have been £2,868,113, subject to satisfaction of relevant performance conditions.
“Cumulatively, the value of lapsed unvested share awards and the bonus or variable remuneration for 2023 that Ms Rose will forego totals £7,579,604.
“In accordance with the terms of the DRP, under the settlement agreement a payment will be made towards Ms Rose’s legal fees and outplacement support.
“This will be a maximum of £395,000 plus VAT for legal fees and £60,000 plus VAT for outplacement support.”
NatWest added: “The board has confirmed that, in line with Ms Rose‘s service agreement, payment of her fixed pay elements will be made for the remainder of her contractual notice period, which will end on 26 July 2024.
“These contractual elements comprise salary, fixed share allowance and a pension allowance of 10% of salary and contractually agreed benefits in line with the terms of our approved Directors’ Remuneration Policy (DRP).
“The total value over the remainder of the notice period is £1,748,142.”
Rose said in a statement she was pleased that NatWest has confirmed that no findings of misconduct were found.
“I can also confirm acceptance of the terms of the settlement agreement, which is in line with NatWest Group’s Remuneration Policy, bringing the matter to a close,” said Rose.