NatWest’s Bold Move: CEO Pay Hike & Record Bonuses Amid Privatization
Big news coming out of NatWest! The bank is making waves with its latest announcement—a substantial 43% increase in the potential pay of its CEO, Paul Thwaite, allowing him to earn up to £7.7 million in a single year. If NatWest's stock price sees a 50% surge, that number could skyrocket to £9.5 million , thanks to performance-linked bonuses.
This comes as the bank prepares for a historic transition—returning to full private ownership after 17 years of partial government control following its 2008 taxpayer-funded bailout. The UK government’s stake, which once stood at a staggering 84% , has now shrunk to just under 7% . By June, NatWest aims to finally cut the cord and operate as a fully privatized entity once again.
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But the CEO’s potential payday isn’t the only big number here. NatWest has also boosted its banker bonus pool by 24% , now standing at £446.6 million —the highest since 2013. This hefty payout is meant to reward top performers, but it’s sparking controversy, especially given the bank's history and the economic challenges faced by everyday consumers.
On the financial front, NatWest reported a modest 0.3% increase in pre-tax profits , reaching £6.2 billion for 2024. Meanwhile, shareholders—including the Treasury—are set to receive a £1.2 billion year-end dividend . The government’s remaining stake means about £83.8 million will flow back into public funds.
Despite these financial gains, not everyone is thrilled. Critics argue that reviving a high-bonus culture is risky. Luke Hildyard , from the High Pay Centre, warns that excessive executive pay contributed to past economic instability, while Hannah Dewhirst from Positive Money highlights the irony: “NatWest is handing out huge bonuses while everyday people struggle with high borrowing costs.”
With the bank’s upcoming April shareholder meeting , all eyes will be on whether investors approve this new pay structure. As NatWest moves towards full privatization, the big question remains—will this strategy fuel long-term success or reignite concerns about corporate excess?
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