In the latest development surrounding the controversy at NatWest (LON:NWG), the bank announced Today plans to withhold a significant portion of former leader Alison Rose's £10 million payoff. This decision, which will be disclosed to the London Stock Exchange by the end of this week, comes in response to Rose's controversial resignation earlier this year.
Rose, who left her position at the state-owned bank at the end of July, had misinformed a BBC journalist about the reasons for closing Nigel Farage's Coutts accounts due to banking criteria and political views. Despite her resignation, she continued receiving her annual £2.4 million salary as per contract terms and was eligible for a pro-rata portion of £2.9 million bonuses and share awards from last year.
Last month, Farage criticized what he termed the 'woke' culture under Rose's leadership for his debanking and alleged 'vile' comments made by staff. He claimed high-level involvement in his account closure and called for an investigation into NatWest's conduct. Farage also urged that Rose's bonuses be stripped in light of these events.
The controversy deepened when an internal report labeled Farage 'transphobic', leading to his Coutts account closure. Coutts is a bank serving the Royal Family and is part of NatWest Group. Farage expressed disbelief at NatWest's behavior and demanded staff suspensions.
In addition to withholding most of Rose's payoff, particularly discretionary elements and deferred share awards, it has been revealed that Rose owns £5.65 million worth of NatWest shares. The bank is also expected to cover Rose's legal fees related to this matter.
InvestingPro Insights
As we delve into the financial performance of NatWest Group (NWG), InvestingPro data shows that the bank has a market cap of $43.04 billion. The P/E ratio stands at 8.47, indicating a low earnings multiple. The bank has seen a revenue growth of 18.07% over the last twelve months as of Q3 2023, and it pays a significant dividend to shareholders with a yield of 5.61%.
InvestingPro Tips highlight that NatWest has been experiencing accelerating revenue growth and consistently increasing earnings per share. However, the bank has been quickly burning through cash and suffers from weak gross profit margins. Despite a significant return over the last week, the price has fallen significantly over the last three months. Yet, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months.
For those interested in more detailed insights and tips about NatWest or other companies, InvestingPro offers a wealth of additional tips and data.
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