NatWest CEO Compensation Rising
Paul Thwaites has stepped into the role as NatWest’s highest-paid chief executive since Fred Goodwin, who earned £7.7 million just before the 2008 financial crisis. Thwaites, who guided the bank to full private ownership last year, earned a compensation package totaling £6.6 million in 2025, marking a one-third increase compared to his predecessor.
This pay package surpasses the £5.2 million that Alison Rhodes received in 2022, before Thwaites took over in 2023 following a controversy involving Nigel Farage, who alleged the bank was unfairly closing accounts. This makes Thwaites the most profitable CEO for the group since 2006, a time when the organization, then known as the Royal Bank of Scotland (RBS), was thriving.
Goodwin’s controversial spending habits eventually contributed to the bank’s collapse, necessitating a £45 billion government bailout during the 2008 crisis. When pressed about the appropriateness of salaries reverting to pre-crisis levels, Thwaites expressed pride in NatWest’s recent achievements.
He acknowledged the high compensation associated with senior roles in financial services and remarked on his fortune. “It’s probably a bit reckless to think otherwise,” he said. He went on to explain that executive pay decisions are influenced by the board and shareholders, with compensation linked closely to performance.
Thwaites’ earnings have benefited from the bank’s privatization and the recent lifting of limits on bankers’ bonuses, which used to cap them at twice their base salaries. This change followed the lifting of caps across the UK after Brexit, aimed at attracting more high-income bankers.
His package includes a £1.1 million salary, a £1.1 million fixed share allowance, pension contributions, and other benefits, alongside a £4 million bonus. Notably, this bonus featured an annual increment of £1.5 million, a substantial jump from the previous year’s £890,000. The remaining amount is tied to a long-term bonus scheme, with £2.5 million to be paid in 2025.
This impressive increase is attributable to NatWest’s reported pre-tax profits of £7.7 billion in 2025, reflecting a 24% rise from the previous year’s £6.2 billion.
Furthermore, the company has raised bonuses for its top bankers, increasing the total bonus pool by 10.8% to £495 million, the highest level since 2013, during which the bonus pool was around £576 million amidst the financial crisis.
NatWest’s annual report indicates that 89 “significant risk takers” earned over €1 million (approximately £870,000) in 2025. The bank noted that 20 individuals earned between €1.5 million and €2 million while 14 surpassed the €2 million mark. As of last year, NatWest employed around 59,000 full-time staff.
Interestingly, NatWest bankers will likely enjoy a productive working relationship with their counterparts at Barclays, which is also providing the largest bonus pool in 12 years. Barclays has announced £2.2 billion in bonuses for the 2025 financial year, representing a 15% increase from £1.9 billion the previous year, following a 13% rise in full-year profits to £9.1 billion.
