Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Barclays and Natwest remove climate targets from annual executive pay

by February 18, 2025
February 18, 2025
Barclays and Natwest remove climate targets from annual executive pay

Two of Britain’s biggest banks, Barclays and NatWest, are removing sustainability metrics from their short-term executive bonus plans, instead shifting climate goals into multi-year incentive schemes.

The move aligns with a broader trend in the corporate world to scale back—or entirely drop—environmental or diversity measures linked to pay packages.

Under Barclays’ overhaul, climate targets will no longer feature in annual bonus calculations for its chief executive, CS Venkatakrishnan (“Venkat”), or other senior managers, and will instead be “fully” integrated into a new long-term incentive plan (LTIP). The bank believes assessing climate objectives over several years provides a clearer view of progress, which it says may be “volatile and non-linear.” Venkat’s LTIP is worth up to 550 per cent of his £1.6 million salary, while his maximum annual bonus is 250 per cent.

NatWest is making similar changes, removing climate metrics from annual awards and relocating them to a revised share-based plan. Chief executive Paul Thwaite, who earns a base salary of nearly £1.2 million, could receive up to £3.5 million through this new structure, almost triple his base pay. Although NatWest previously weighted climate performance at 10 per cent in annual bonuses, it will now form part of a 15 per cent sustainability segment within its longer-term scheme.

These decisions follow the UK’s decision to remove a banker bonus cap inherited from the European Union. They also mirror wider upheavals beyond British finance: Six major American banks, including JPMorgan Chase and Morgan Stanley, have pulled out of a global net-zero alliance amid political backlash at home. Meanwhile, global corporations such as Meta (owner of Facebook) and retail giant Walmart have revoked or cut back on their diversity, equity and inclusion policies following the return of President Trump, who has rescinded various related measures.

BT Group, the former state telecoms provider, also confirmed this month that it would scrap the diversity component from its bonus plan for thousands of middle managers—highlighting a growing shift away from using social and environmental goals in annual remuneration.

NatWest said it remains committed to embedding sustainability within executive pay, while Barclays reiterated in its annual report that the long-term view is most appropriate for assessing climate performance. Rivals HSBC and Lloyds continue to reflect environmental progress in their executive compensation, though future updates may also face scrutiny amid evolving regulatory and shareholder pressures.

Read more:
Barclays and Natwest remove climate targets from annual executive pay

0
FacebookTwitterGoogle +Pinterest
previous post
Stamp duty deadline sparks property sales surge
next post
UK pay growth accelerates as real wages climb, fuelling BOE concerns

You may also like

Business secretary under fire over delayed talks as...

December 16, 2024

A Deep Dive Into Their Role and Adaptation...

October 28, 2024

UK Business Flight Demand Drops by Nearly a...

May 20, 2024

What Kind of Music Does Hip Hop Music...

June 14, 2023

Whisky and visas mean £27bn trade deal between...

October 19, 2022

Q&A with Donato Tramuto: Insights on Leadership, Innovation,...

July 2, 2024

What are the tax implications of Relevant Life...

June 6, 2024

Cryptocurrency and Betting: A Match Made in Digital...

April 2, 2024

China tells the world it is open to...

January 17, 2024

Abound Secures £800 Million Funding Round with Backing...

May 7, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • TSA tells Americans their Costco cards won’t fly at airport security despite love for hot dogs

      June 7, 2025
    • Trump announces China will restart rare earth mineral shipments to US after productive call

      June 7, 2025
    • Musk feud presents ‘unprecedented’ dynamic compared to past Trump disputes: expert

      June 7, 2025
    • Snub of Musk’s NASA nominee ally preceded sudden ‘big, beautiful bill’ criticism, Trump feud

      June 6, 2025
    • Supreme Court rules DOGE can access Social Security information

      June 6, 2025
    • US sanctions money laundering network aiding Iran as regime faces nuclear reprimand at IAEA

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,019)
    • Politics (15,558)
    • Stocks (3,134)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved