Natwest Group’s newly appointed boss has axed a third of his executive committee after the UK government announced its divestment of its controlling stake in the Big Four bank earlier this week.
Paul Thwaite, who formally became chief of the bank in Febraury, has restructured the group’s management team, including the departure of key executives such as Gideon Moore, the group’s chief legal officer and general counsel, and Matt Austen, the director of strategy and corporate development.
Thwaite revealed the overhaul in an internal note this week, which was seen by the Financial Times and confirmed by Natwest. In the note, he said that “customer focus and simplification needs to start at the top of the bank — removing unnecessary complexity and streamlining decision-making processes, so colleagues can focus time and energy on the areas they can have the greatest impact and add the most value for customers.”
Natwest is gearing up for a sale of stock to retail investors, after the government announced on Monday it has slashed its stake to below 30 percent, effectively relinquishing its status as the bank’s controlling shareholder.
Previously, the Treasury owned 84 per cent of Natwest Group, which it bought to stabilise the then Royal Bank of Scotland during the 2008 financial crisis.
Natwest said: “Today, we have announced changes to our structure, which will help us shape the future of the bank and accelerate the delivery of the priorities set out at our recent financial results.
“The new structure will enable NatWest Group to operate as a simpler, more integrated business and, ultimately, better serve and support our customers.”
Robert Begbie, a seasoned veteran with four decades of service at Natwest, will assume the permanent role of chief of commercial and institutional banking.
Incoming chair Rick Haythornthwaite will succeed former Financial Services Authority chair Sir Howard Davies from April. Additionally, top UBS executive Emma Crystal is set to fill Flavel’s boots.
Natwest was mired in crisis last year following accusations from Nigel Farage against Coutts, a division within its wealth management arm, alleging that they refused to serve him on political grounds. The ensuing fallout resulted in the departure of former chief executive Dame Alison Rose and Coutts’ leader, Peter Flavel.
In its recent full year results, the bank reported an operating profit of £6.2bn for 2023, a 20 percent increase over the previous year.
