Barclays and Natwest under scrutiny for excessive pay awards
Recent reports about executive pay at Barclays and NatWest have raised concerns about the direction of pay practices in the banking sector. Barclays’ decision to award its CEO, C.S. Venkatakrishnan, a £10.5 million pay package—while millions face economic hardship—has drawn sharp criticism. As we stated in response, “At a time when millions are struggling with the cost-of-living crisis, these pay awards are hard to justify. They reflect a continued disconnect between top earners and the rest of the workforce.” (The Guardian, The Mirror)
Similarly, NatWest’s proposal to increase its CEO’s maximum pay has sparked further debate. We warned that such decisions “risk further alienating the public and undermining trust in the banking sector.” (The Guardian) These developments come amid sustained pressure from voices in the City to allow higher executive pay, alongside the government’s decision to maintain the removal of the cap on banker bonuses.
While these are individual cases, they could signal a worrying shift towards normalising excessive pay in the banking sector. At the High Pay Centre, we continue to call for greater transparency and accountability in setting executive pay, including measures such as employee representation on remuneration committees. As banks consider ever-larger pay packages, the need for reform remains urgent.