Proactive Investors - NatWest Group PLC (LON:NWG) has been criticised by an influential proxy adviser for paying new boss Paul Thwaite the same salary as predecessor Alison Rose, even though he has much less experience.
Thwaite's pay of £1.2 million was questioned by Institutional Shareholder Services (ISS) due to his “limited experience” as a chief executive.
This was the same as the lender's previous chief executive, Alison Rose, despite Thwaite not having the same leadership experience.
ISS said in its report on the remuneration: “The new CEO’s salary has been set at the same level as his predecessor, despite limited experience as a lead executive,” ISS said in its report.
“As this is his first lead executive role, there may be a preference among shareholders for his intended salary level to be introduced on a phased basis, subject to performance, both individual and corporate.”
NatWest initially offered Thwaite a £1 million salary before raising it 20%.
He was made CEO in February, after being given the job on an interim basis last July after Rose was forced to quit after the Nigel Farage debanking furore.
Thwaite was CEO of NatWest's commercial banking division since 2019, the same year Rose was made group CEO after spending all her working life at the bank.