NWG NatWest Group plc

By Elena Vardon

Former NatWest Chief Executive Officer Alison Rose is set to miss out on 7.6 million pounds ($9.3 million) in bonuses and share awards, the bank said.

The lender said so-called "good leaver" status isn't applicable under share-plan rules, meaning she will forego the bulk of her potential payout and will only receive the fixed elements of her pay for the rest of her notice period.

Rose resigned in July following her conversation with a journalist about the accounts of former Coutts customer and Brexit campaigner Nigel Farage that engulfed the British bank--which is around 40% owned by the U.K. government--in a political drama.

Under her contract, Rose was due to receive GBP2.3 million for 2023, half in the form of a salary and the other as a fixed-share allowance released each year over five years. She was also entitled to a pension allowance of 10% of her salary and contractually agreed benefits in line with the remuneration policy, the bank said in August.

NatWest said Friday that Rose will be paid these fixed elements--a sum of GBP1.7 million--for the remainder of her notice, which ends on July 26 next year.

The former executive will lose any share awards due to vest after that date--worth GBP4.7 million based on the stock's closing price on Thursday--and won't get any bonus or variable remuneration for her service during 2023. This would have been worth up to GBP2.9 million if she had stayed on for the full year, the bank said.

The bank will cover Rose's legal fees up to GBP395,000 plus tax as well as GBP60,000 plus tax for outplacement support, it said.

NatWest said no finding of misconduct has been made against Rose by the group.

An independent review published in October concluded that the closure of Farage's bank account was lawful and that it was a "predominantly a commercial decision." Farage had claimed he was dropped as a client of Coutts for his political views. However, the bank admitted that the report set out a number of "serious failings" related to the treatment of Farage.

Rose is currently serving her 12-month notice period during which she isn't allowed to take on new appointments.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

November 10, 2023 06:17 ET (11:17 GMT)

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