New Natwest boss name – with £4m pay
Natwest Group, the partially state-owned banking giant and owner of Royal Bank of Scotland, has appointed Paul Thwaite as its permanent chief executive, and confirmed that he could earn as much as £4 million in salary, bonuses and share awards.
Thwaite succeeds Dame Alison Rose, who stepped down in the wake of the debanking row involving Nigel Farage last year. The board said the group’s new boss was an “outstanding candidate and the right person to shape the future of Natwest”. Thwaite became the bank’s interim boss in July. He was previously running its commercial business.
His remuneration package includes a base salary of just under £1.16m, but he could pocket an annual bonus of up to 100 per cent of salary, delivered equally in cash and shares, and a restricted share plan award with a maximum opportunity of 150 per cent of salary, delivered in shares. That would give a total reward of just over £4m.
News of the appointment came as the banking group revealed an operating pre-tax profit of £6.2 billion for 2023, higher than analysts had estimated and the strongest profit since just before the global financial crisis in 2007. It was also up by a fifth compared with 2022, with the group benefiting from rising interest rates pushing up the cost of borrowing.
However, Natwest said it had been affected by the more competitive savings rates environment. Customer deposits, excluding oneoff items, fell by £13.8bn during the year, as more customers hunted around for a better deal on their savings. But it also saw more people moving money into fixed-rate savings accounts.
Its net interest margin – which shows the difference between what a bank pays out for deposits and earns from loans – fell during the final three months of the year, compared with the previous quarter, as it paid out more to savers.
Thwaite stepped into the interim CEO role after Dame Alison’s exit in the wake of the socalled debanking rowaroundformer Ukip leader Nigel Farage’s account with Coutts, a highnet-worth bank owned by Natwest. She had worked at the bank for more than 30 years.
Thwaite said: “It’s an honour to lead what, I believe, is a great business, which plays a vital role in the lives of the 19 million customers we serve. With that, comes a great sense of responsibility to succeed for our customers, colleagues, and shareholders. Our customers’ needs and expectations are changing at pace, as they engage with emerging technology, adapt to new social trends, and build ever more resilience to a fast-evolving world. I believe that Natwest, with its heritage, leading customer businesses, deep regional connections and financial strength, can be a trusted partner to customers during a period of change.”