Chief executives at three of Britain’s largest banking institutions have received substantial compensation packages totalling £29 million whilst their organisations continue to accelerate the closure of physical branch networks.
The disparity between executive remuneration and branch rationalisation strategies has provoked considerable commentary from shareholder advocates and public interest groups.
Lloyds Banking Group revealed that chief executive Charlie Nunn received a total compensation package valued at £7.4 million during 2025, representing a significant increase from £6.2 million in the preceding year. This elevation marks the highest executive remuneration at Lloyds since 2015 and arrives following the group’s announcement of a 12 per cent increase in annual profits, reaching £6.7 billion. The timing coincides with the closure of 218 branch locations during 2025, with an additional 158 closures either planned or already executed during 2026.
NatWest‘s chief executive Paul Thwaite secured the largest individual compensation package among the three institutions examined. His annual remuneration increased substantially by approximately one third to £6.6 million, representing the highest payout at the bank since Stephen Hester’s compensation in 2010. This substantial increase aligns with the bank’s achievement of full private ownership status following its £45 billion government bailout during the 2008 financial crisis. Concurrently, NatWest has closed 105 local branches, with a further 30 closures either scheduled or completed during the current year. The bank reported profits surged 25 per cent year-on-year to £7.7 billion, driven principally by its private banking and wealth management divisions.
Thwaite acknowledged his elevated compensation status, stating that he remained “very fortunate” and that it would be “churlish” to suggest otherwise. He maintained that a “very close link” exists between executive compensation and organisational performance, attributing his increased package to “strong results and share price growth”.
Barclays announced that chief executive CS Venkatakrishnan received a compensation package exceeding £15 million, up from £11.6 million during 2024. The bank’s branch closure activity proved comparatively modest, with only six locations closed during the period, though it pledged to announce no further closures during the current year.
Andrew Speke, interim director of the High Pay Centre, offered critical assessment of these compensation trends. He observed that the sums substantially exceed average remuneration for FTSE 100 chief executives and represent year-on-year increases that significantly outpace both inflation rates and broader wage growth across the economy. Speke questioned whether the performance achievements of all three executives genuinely justified such considerable rises, characterising the situation as emblematic of a “broken executive pay model”.
Speke advocated for government intervention, stating that if the administration intended to regain public confidence and demonstrate prioritisation of wider public interests over corporate entities, action should be implemented to address what he termed “runaway executive pay“.
Industry observers note that the apparent contradiction between branch network contraction and executive compensation expansion reflects divergent priorities within banking sector leadership. Whilst cost reduction through branch closures generates increased profitability that benefits shareholders and executive compensation schemes, this strategic approach raises accessibility concerns regarding service provision for elderly and vulnerable customer demographics who traditionally depend upon physical branch networks for banking transactions.
