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UK executive pay and share incentives: Barclays, NatWest and HSBC revise climate metrics in incentives; BAT remuneration changes; HMRC manuals, SAYE bonus rates and PRA/FCA consultations (20 February 2025)

Published on: 20 February 2025

Published by a LexisNexis Share Incentives expert
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Corporate governance

Banks change approach for climate targets in executive pay

The 2024 annual reports of NatWest Group plc and Barclays PLC indicate a change in how both banks link climate-related objectives to executive remuneration—shifting emphasis from short-term bonus plans to long-term incentive awards. At NatWest, where annual bonuses previously carried a 10% climate weighting, future non-financial elements of the bonus will prioritise customer, colleague and simplification outcomes. These will run alongside a proposed performance share plan expected to assign 15% to sustainability measures, including climate targets. NatWest plans to incorporate these features into new pay proposals to be presented to shareholders for approval at its AGM on 23 April 2025 as part of an updated directors’ remuneration policy. Barclays, which outlined new executive pay proposals last week (see News Analysis: Share Incentives weekly highlights—13 February 2025—Corporate governance), has likewise confirmed that climate targets will no longer apply to annual bonuses for its CEO and other senior managers...

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