Ex-NatWest Group PLC boss Alison Rose has reportedly threatened to sue her former employer if it cancels bonus payments on the back of pressure from politician Nigel Farage.
Sky News reported on Wednesday that Rose has been weighing up a legal response in view of expectations that some £5.2 million in bonuses from the bank could be written off.
Given that analysts had already warned that these questions may loom large over NatWest’s third-quarter results on Friday, the latest reports revive a saga that the bank would have preferred to shake off as it searches for a new chief executive.
Rose stepped down from her role in July, after admitting a “serious error of judgment” over the ‘debanking’ scandal that saw Farage lose his account with NatWest subsidiary Coutts.
She had told the BBC that Farage lost his account with the lender due to insufficient funds, a claim that ultimately proved untrue. The bank's move had been due to concerns over Farage's “values”.
Farage had alleged that the decision was politically motivated though and renewed calls on NatWest to scrap Rose’s bonus pay on Tuesday after revealing internal emails between bank staff had referred to as a “crackpot” and a “fool”.
NatWest had been anticipated to reach a decision on Rose’s bonus payments in the coming days, though whether the new threat of legal action delays this remains to be seen.
"In line with our previous commitments, the key findings of the independent review and the recommendations will be considered by the board,” a Natwest spokesperson said.
“These, along with the group response, will be published in due course. In the meantime, we will not comment on any speculation.”