Banking Bosses Strike Gold Again: NatWest CEO’s Pay Sparks Debate
In a move that’s sure to raise eyebrows, NatWest CEO Paul Thwaite has secured the largest payout for a chief executive of the banking group since the infamous Fred Goodwin’s £7.7m windfall in 2006—just before the 2008 financial crisis. But here’s where it gets controversial: Thwaite’s £6.6m pay package for 2025 comes at a time when the bank, once bailed out by taxpayers, has returned to full private ownership under his leadership. Is this a well-deserved reward, or a step too far?
Thwaite’s compensation marks a 33% increase from the previous year and surpasses the £5.2m earned by his predecessor, Alison Rose, in 2022. Rose stepped down in 2023 amid a high-profile dispute with Nigel Farage, who accused the bank of discriminatory account closures. Thwaite’s payout now makes him the highest-paid NatWest CEO since the bank’s pre-crisis heyday, when it was known as the Royal Bank of Scotland (RBS).
And this is the part most people miss: Goodwin’s excessive pay and risky decisions were later blamed for RBS’s near-collapse, which required a staggering £45bn government bailout in 2008. Yet, here we are, nearly two decades later, with executive pay soaring once again. When asked about the appropriateness of his pay, Thwaite acknowledged the sensitivity of the issue, stating, ‘I recognise that senior roles in financial services are very well paid… I believe I’m very fortunate.’ He also emphasized that executive pay is tied to performance and approved by shareholders—a point that’s sure to spark debate.
Thwaite’s earnings were boosted not only by NatWest’s privatisation but also by the lifting of the banker bonus cap, a post-Brexit move aimed at attracting top talent to the UK. His £4m bonus includes a £1.5m annual bonus (up 68% from the previous year) and £2.5m from a long-term incentive scheme. This comes as NatWest reported £7.7bn in pre-tax profits for 2025, a 24% jump from 2024.
The bank’s generosity extends beyond Thwaite: the group bonus pool rose by 10.8% to £495m, the highest since 2013. Additionally, 89 ‘material risk takers’ earned over €1m in 2025, with 14 taking home more than €2m. Meanwhile, rival bank Barclays has also rewarded its bankers with a £2.2bn bonus pool, its largest in 12 years, following a 13% rise in profits.
Is this a fair reflection of performance, or a return to the excesses of the past? As NatWest celebrates its success, the question remains: Are these payouts justified, or do they risk alienating the public and regulators? Let us know your thoughts in the comments—this is one debate that’s far from over.
