NatWest Group Plc is preparing to hand out slightly lower bonuses to its staff as the UK government works on a plan for a retail share offer. The company is expected to pay around £350m in staff bonuses as the government draws up plans for a retail share offer that could allow the public to purchase shares in the bank. This move comes amid criticism from some who believe it is unfair that the company, which was previously involved in scandalous practices, will still be able to distribute such a significant bonus pool.
NatWest Group PLC Trading Lower Amid Bonus Controversy
NatWest Group PLC, trading as NatWest, saw a 2.3% drop in shares from Friday’s close on Monday. The decline came as reports emerged over the weekend suggesting that the company was planning to distribute £350m in bonuses to its staff. The news is significant as it highlights the tension surrounding the bank’s bonus payouts, particularly considering the government’s intention to offer shares to the public. The company’s decision to lower the bonus pool comes amid criticism that it is inappropriate to reward employees when many still have grievances related to the bank’s past conduct.
Summary:
NatWest Group Plc to hand out marginally lower bonuses to staff UK government working on a plan for a retail share offer NatWest Group PLC shares dropped 2.3% following reports of bonus payout £350m bonus pool criticized given the bank’s past scandals Government’s retail share offer raises questions about fairness
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The decision to lower the bonus pool at NatWest Group PLC comes as the UK government’s plans for a retail share offer continue to develop. It has been suggested that this move, which would allow the public to purchase shares in the bank, is a rare occurrence in the post-privatisation era. However, the timing of the bonus payout has sparked outrage, with critics pointing to the bank’s previous misconduct and expressing concern over the fairness of rewarding staff while many customers still feel mistreated. The controversy surrounding the bonus pool has had a negative impact on the company’s stock performance, with shares experiencing a decline in value.
“Issues related to the bank’s past conduct have raised questions about the appropriateness of distributing bonuses at this time. It will be interesting to see how the public perceives the government’s retail share offer given the ongoing concerns surrounding NatWest’s treatment of customers.” – Financial Services Analyst