Advisory firm Institutional Shareholder Services (ISS) warned that Mr Thwaite’s salary would be the same as that of his predecessor, Alison Rose, despite his lack of experience in a top leadership role. The firm suggested his starting salary should be lower, with any increases tied to his individual and the company’s performance.

NatWest, which is still 28.9% owned by the UK government, had initially offered Mr Thwaite a £1m salary, but later increased it by 10%. He was appointed CEO in February, replacing Ms Rose, who left amid a controversy over the bank’s dealings with Nigel Farage.

A NatWest spokesperson told The Guardian: “We benchmark our executive pay policy against our peers, and market data helps to inform annual pay decisions.”

The UK government is now preparing to sell some of its remaining stake in NatWest, which received a £46 billion bailout during the 2008 financial crisis.