NatWest CEO Paul Thwaite Earns £6.6m, Highest Executive Pay Since Pre‑2008 Crisis

NatWest Chief Earns Pre-Crisis Pay as Profits Surge

London, United Kingdom – NatWest Group’s Chief Executive, Paul thwaite, is set to receive a remuneration package of £6.6 million for 2025, marking the highest compensation for a leader of the banking group as the turbulent period preceding the 2008 financial crisis. This news arrives alongside a substantial increase in the bank’s profits and a broader trend of rising payouts within the United Kingdom’s financial sector.

Record Profits Drive Executive Compensation

NatWest’s financial performance for 2025 showcased a meaningful upswing, reporting pre-tax profits of £7.7 billion – a 24% increase from the £6.2 billion recorded the previous year. This surge in profitability directly influenced executive compensation decisions, leading to a one-third increase in Thwaite’s overall pay. The rise in profitability has allowed natwest to reward its leadership, mirroring similar trends across the industry. According to a recent report by Deloitte, the financial services sector experienced an average pay increase of 8% in 2025.

A Return to Pre-Crisis Levels?

The substantial increase in Thwaite’s pay has sparked debate, drawing comparisons to the pre-2008 era of lucrative banker compensation. A pivotal figure from that time, Fred Goodwin, former Royal Bank of Scotland (RBS) chief, received £7.7 million prior to the bank’s near-collapse. Thwaite acknowledged the sensitivity surrounding executive pay levels, stating he recognized the high earnings in financial services and felt lucky to be in his position. He emphasized that the pay policy is determined by the board and subject to shareholder approval and is directly correlated with performance.

Bonus Structures and Regulatory Shifts

Several factors contributed to Thwaite’s substantial earnings. The lifting of the banker bonus cap—a post-Brexit measure intended to attract talent back to the U.K.—played a significant role. Previously, bonuses were limited to twice an executive’s salary.This change, combined with the bank’s successful privatization, allowed for a more substantial reward structure. Thwaite’s package includes a £1.1 million salary, a £1.1 million fixed share allowance,and a noteworthy £4 million bonus,comprising both annual and long-term incentives.

Industry-Wide Trend

NatWest is not alone in rewarding its executives generously. Barclays recently announced a bonus pool of £2.2 billion for its bankers, a 15% increase year-over-year. Similarly, Citigroup’s chief executive, Jane Fraser, received a $42 million package in 2025, representing a nearly 25% increase from the prior year.This broader trend suggests a resurgence in profitability across the financial landscape and a willingness to share those gains with top-level employees.

key Figures at NatWest

Executive	2025 Compensation
Paul Thwaite (CEO)	£6.6 million
Alison Rose (Former CEO)	£5.2 million (2022)
fred Goodwin (former RBS CEO)	£7.7 million (Pre-2008 Crisis)

NatWest’s annual report also revealed that 89 individuals classified as “material risk takers” earned over €1 million in 2025. Of these, 20 earned between €1.5 million and €2 million, and 14 exceeded €2 million.

As the financial sector continues to navigate a dynamic economic environment, the question of executive compensation will remain a point of scrutiny and debate. How will increased scrutiny of executive pay affect future compensation structures in the banking sector? Do these payouts adequately reflect the risks still present in the global financial system?

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What’s included in Paul Thwaite’s £6.6 million total pay package at NatWest?

natwest CEO Paul Thwaite’s £6.6m pay: A Deep dive

Paul thwaite, the current Chief Executive Officer of NatWest Group, has received a total remuneration package of £6.6 million for 2025, marking the highest executive pay at the bank since the financial crisis of 2008. this figure, revealed in NatWest’s annual report, has sparked considerable debate regarding executive compensation within the banking sector, notably given the ongoing cost of living challenges faced by many UK households.

Breakdown of Paul Thwaite’s Remuneration

The £6.6 million package isn’t simply a base salary. It’s comprised of several key components:

* Base Salary: A foundational element,reflecting the CEO’s core responsibilities.

* Annual Bonus: Tied to NatWest’s financial performance and strategic objectives. In Thwaite’s case, this was a significant contributor.

* Long-Term Incentive Plan (LTIP): A performance-based reward designed to align executive interests with long-term shareholder value. This typically vests over several years.

* Pension Allowance: Standard benefits contributing to retirement planning.

* Other Benefits: Including allowances for housing, car, and health insurance.

The substantial LTIP payout is a major driver of the overall figure, reflecting NatWest’s performance against pre-set targets. These targets often include profitability, return on equity, and customer satisfaction metrics.

Context: NatWest’s Financial Performance in 2025

NatWest reported strong financial results for 2025, contributing to the justification of Thwaite’s pay. Key highlights included:

* Record Profits: The bank announced pre-tax profits exceeding £8 billion, driven by higher interest rates and a relatively stable economy.

* Strong Capital Position: NatWest maintained a robust capital adequacy ratio, exceeding regulatory requirements.

* Increased Lending: The bank increased lending to both businesses and consumers, supporting economic growth.

* Return on Tangible Equity (ROTE): A key metric for bank profitability, NatWest’s ROTE considerably improved.

however, it’s crucial to note that higher interest rates, while boosting profits, also contribute to increased mortgage costs for homeowners and borrowing costs for businesses.This duality is central to the criticism surrounding executive pay.

Comparing Thwaite’s Pay to Pre-2008 Levels & Peers

The £6.6 million figure is particularly noteworthy becuase it surpasses the levels of executive compensation seen at NatWest before the 2008 financial crisis. This period was marked by excessive risk-taking and ultimately lead to a global economic downturn, prompting stricter regulations on bank executive pay.

How does Thwaite’s remuneration compare to his peers?

* Lloyds Banking Group CEO Charlie Nunn: Received approximately £5.6 million in 2025.

* Barclays CEO C.S. venkatakrishnan: Earned around £8.9 million, including a substantial LTIP payout.

* HSBC CEO Noel Quinn: Received approximately £10.6 million.

While Thwaite’s pay is substantial, it falls within the range of compensation for CEOs of major UK banks. However, the comparison to pre-crisis levels remains a sensitive point.

The Public and Political Reaction

The announcement of Thwaite’s pay has drawn criticism from various quarters:

* Trade Unions: Unite and other unions have condemned the payout as “out of touch” and “unjustifiable” given the ongoing cost of living crisis and real-terms pay cuts experienced by many NatWest employees.

* Shareholder Advisory Groups: Influential groups like ISS and Glass Lewis will scrutinize the pay package and may recommend votes against the remuneration report at the upcoming Annual General Meeting (AGM).

* Political Pressure: Members of Parliament have called for greater restraint on executive pay, particularly within publicly-owned or partially-owned institutions like NatWest (where the UK Government still holds a significant stake).

* Public Sentiment: Social media platforms have been filled with negative reactions, highlighting the perceived disconnect between executive rewards and the financial struggles of ordinary citizens.

NatWest’s Defence of the pay Package

NatWest defends the remuneration package by emphasizing the following:

* Performance-Based: The pay is directly linked to the bank’s strong financial performance and the achievement of key strategic objectives.

* Competitive: The package is necesary to attract and retain top talent in a competitive global market.

* Alignment with Shareholders: The LTIP is designed to align executive interests with those of long-term shareholders.

* Regulatory Compliance: The remuneration policy complies with all relevant regulatory requirements.

The bank also points to its commitment to supporting customers and communities,including initiatives to help those struggling with the cost of living.

The future of Banking Executive Pay

The debate surrounding Paul Thwaite’s pay is indicative of a broader conversation about executive compensation in the banking sector. Several factors are likely to shape the future landscape:

* Increased Scrutiny: Expect continued scrutiny from regulators,shareholders,and the public.

* ESG Considerations: Environmental, Social, and Governance (ESG) factors are increasingly influencing remuneration decisions.

* Stakeholder Capitalism: A growing emphasis on balancing the interests of all stakeholders, not just shareholders.

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