A Controversial Payout: NatWest's CEO Paul Thwaite Breaks Records
In a move that has sparked debate, Paul Thwaite, the CEO of NatWest, has secured the largest payout for a banking group executive since the infamous Fred Goodwin's reign in 2006. Thwaite's £6.6 million package for 2025 surpasses even his predecessor's earnings, raising eyebrows and prompting questions about executive compensation.
But here's where it gets controversial: Thwaite's payout is a return to pre-financial crisis levels, reminiscent of the era when the bank, then known as Royal Bank of Scotland (RBS), was at its peak. This development comes despite the bank's near-collapse during the 2008 crisis, which required a massive government bailout.
When asked about the appropriateness of his pay, Thwaite expressed pride in NatWest's achievements, acknowledging the high salaries in financial services. He emphasized the link between executive pay and performance, suggesting it's a matter of policy and shareholder approval.
"The exec pay policy is set by the board, and it's a delicate balance between rewarding success and maintaining public trust. It's a complex issue, and I'm happy to discuss it further," Thwaite added, inviting scrutiny and debate.
And this is the part most people miss: Thwaite's earnings were not just due to the bank's privatization but also a decision to lift the banker bonus cap, allowing his bonus to exceed his salary. This move, part of post-Brexit strategies, aimed to attract high-earning bankers to the UK.
Thwaite's compensation package included a £4 million bonus, a significant increase from the previous year. This jump in earnings aligns with NatWest's reported pre-tax profits of £7.7 billion for 2025, a substantial rise from the previous year.
The bank's annual report also revealed that 89 "material risk takers" earned over €1 million in 2025, with some earning upwards of €2 million. This disclosure has further fueled the debate on executive compensation and the distribution of wealth within financial institutions.
So, is this a sign of a healthy financial sector, or a return to the excesses that led to the 2008 crisis? What are your thoughts on executive pay and its impact on the industry? Feel free to share your opinions in the comments below!
