The bank boss's multi-million dollar exit package was called «a sick joke» by Nigel Farage. Photo: Nicholas T. Ansell/PA
NatWest has been pressured by the government to block a payment of up to £11.3m to former boss Lady Alison Rose.
On Wednesday, the bank said that Lady Alison, who resigned last month over her role in the Nigel Farage 'bankruptcy' scandal is in line for a £2.4million exit package while she takes a 12-month gardening holiday.
The Telegraph may also announce that Dame Alison is still eligible for a bonus of up to £2.9m and shares worth £6m.
She has accumulated bank shares since 2017 and will receive them in installments until mid-2029 under the terms of her contract. The board will decide on the award.
Nigel Farage called Ms Alison's £2.4m exit package a «sick joke», while senior Conservative Party officials also urged the government to intervene if the bank's board doesn't will prevent a huge payout.
One Minister told the Telegraph that discussions had been held with the bank's board about the possibility of returning wage payments. The government is NatWest's largest shareholder, holding a 38.6% stake in the bank.
Dame Alison was forced to step down last month over a «debanking» scandal sparked by the closure of Mr. Farage's Coutts account , a subsidiary of NatWest.
A 54-year-old woman was forced to resign after she admitted she mistakenly told a BBC reporter that Mr Farage's bank account was closed because he was not rich enough to meet his threshold values.
Nigel Farage's bank account history
Instead, it was revealed that the bank had a 40-page dossier on Farage's political views that detailed «significant reputational risks associated with doing business with him.»
In the docs Farage's views were said to be «contradictory to our position as an inclusive organization.»
Responding to the news about Ms. Alison's severance package, Mr. Farage said: «When I heard about this, I thought it might be bad joke.
“Of course you can’t violate a client’s privacy, of course you can’t violate almost every important rule of the FCA codebook and you can’t lie about it after informing the BBC and still receive a £2.43m payout.” sterling, and yet that's exactly what happened to Alison Rose.»
The wage deal also drew criticism from other high-profile Tories.
Previous Brexit Minister David Davis said: «If a junior employee violated bank confidentiality, he would be exposed without being paid at all.»
He added: «Honestly, the board of directors should have blocked it.» and if the board of directors was unwilling to do so, the largest shareholder, which turned out to be the Treasury, should have intervened and declared that this was unacceptable.»
Former Business Secretary Jacob Rees-Mogg said, «People fired for gross misconduct don't deserve to be paid.»
Former Tory Party chairman Jake Berry also said it was » a shameful reward» for failure.
Former Tory Party chairman Jake Berry also said it was a «shameful reward» for failure.
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The city's rules allow banks to withdraw senior employee benefits if they are subsequently found to have broken the rules.
Harriet Baldwin, the Conservative MP who chairs the Treasury select committee, said NatWest should consider using the refund rules to minimize payments to Dame Alison and former Coutts chief executive Peter Flavel, who was also forced to resign.
She said: «I think the board's remuneration committee will want to take a closer look at the situation of the two departed CEOs when the external investigation is completed, as part of the remuneration will still be refundable.»
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NatWest said it would continue to review Ms Alison's payments amid an ongoing investigation into the scandal.
The Bank has hired Travers Smith's law firm to review Dame Alison's relationship with the BBC, with results expected by mid-September.
However, Mr. Farage accused the bank of throwing the investigation «into the long grass.»
Dame Alison, who joined the bank as an intern in 1992, served as CEO for four years before stepping down on July 25.
A NatWest spokesperson said: other employees who are still under investigation, Alison currently receives a fixed salary. This is in line with her notice period under the contract and is under constant review as an independent investigation continues.”
They added: “As previously confirmed, no decision on her remuneration will be made until relevant investigations have been carried out. completed.»
A Treasury spokesman said: «NatWest Group is operating independently and their board of directors is responsible for remuneration.»
Downing Street has previously pressured the bank to remove Dame. Alison after the board of directors initially tried to protect her.
Nigel Farage's banking scandal
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