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Dame Alison Rose, former CEO of NatWest, is set to lose £7.6 million in share awards and bonuses after admitting to discussing the closure of Nigel Farage’s bank account. She resigned in July following the incident, and while she receives her £2.4 million fixed pay, NatWest denied her “good leaver” status, preventing her from obtaining the full amount exceeding £10 million. Nigel Farage supports the decision but plans legal action against NatWest, citing “serious failings” in its treatment of him. The closure was deemed lawful, yet factors beyond wealth, such as Farage’s public statements on various issues, were considered. Despite a recent apology from the UK data watchdog to Dame Alison, her settlement includes a continuation of her salary, some shares, and legal fee support.

Sociables Express has been thoroughly focusing on the surge in financial populism. Crypto currency, the short-squeeze of 2021, retail investors betting against regional banks in 2023, the rise of De-Fi, anti de-banking sentiment and the meme stock concept are all rooted in financial populism. Since 2017 political populism has seeped into the financial markets, and it is about to get a lot more ferocious.

The Alison Rose and Nigel Farage controversy is poised to establish a precedent in the UK. Following the footsteps of PayPal, Target, and Anheuser-Busch, NatWest is now embroiled in similar political issues, and this trend is expected to intensify throughout the 2020s, encompassing not only large corporations but also small and mid-cap stocks.

The UK equity market consists of many companies that push socially charged narratives, from ESG to DE&I and virtue signaling. Many public companies in the UK reveal vulnerabilities concerning politics and financial populism. The UK equity market is currently awash with many companies that are greenwashing. Sociables Express can highlight precisely where these vulnerabilities lie, showcasing how activist investors or retail traders can leverage the gap between perception and reality. Just send us a company, and we will show you at least one vulnerability.

Dame Alison Rose’s forfeiture of £7.6 million in stock bonuses will now serve as a cautionary tale for executives. The financial repercussions underscore the risks associated with social and political entanglements. This will likely prompt some executives to reassess their company’s vulnerabilities in the face of public sentiments and political scrutiny. The substantial financial impact on Dame Alison Rose highlights the need for proactive risk management strategies to navigate the complex intersection of social issues and corporate operations. Sociables Express anticipates that this will eventually transpire, though it may require some time, because the UK investor relations sector has yet to delve into the risks posed by populism for their clients.

Explore our in-depth article elucidating why ESG has evolved into a significant political risk for companies. [Link to the article:

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