Former business secretary, Jacob Rees-Mogg, firmly stated that individuals dismissed for gross misconduct should not be entitled to payouts. Joining him in criticism, former Conservative Party chair Jake Berry described the compensation as a “disgraceful reward” for failure. However, regulations permit banks to reclaim awards given to senior staff if they are later found to have violated rules.
Harriet Baldwin, the Conservative MP who chairs the Treasury Select Committee, urged NatWest to utilize clawback rules to minimize the payout to Dame Alison, as well as the former chief executive of Coutts, Peter Flavel, both of whom were forced to resign. Baldwin emphasized that the remuneration committee should carefully consider this matter once the external investigation is completed, as a portion of the compensation may still be subject to clawback.
NatWest clarified that Dame Alison’s payout remains under review as investigations into the scandal continue. To assist in the review process, the bank has enlisted the assistance of law firm Travers Smith, expecting the results to be available by mid-September. However, Nigel Farage accused the bank of prolonging the investigation.
Dame Alison, who began her career at NatWest as a graduate trainee in 1992, served as chief executive for four years before stepping down on July 25. A spokesperson for NatWest explained that currently, Alison receives her fixed pay while the investigation is ongoing, in accordance with her contractual notice period. The spokesperson reiterated that no decision regarding her remuneration will be made until all investigations are complete.
Responding to the issue, a spokesperson for the Treasury emphasized that NatWest Group operates independently, with the Board bearing responsibility for remuneration. Downing Street had previously pressured the bank to remove Dame Alison from her position after initially supporting her.
Overall, the ongoing controversy surrounding Dame Alison and the associated payout remains a topic of scrutiny and will be assessed thoroughly as the investigations progress.
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