Nationwide pressed to address ‘emerging governance issues’ as AGM looms
Summary
Nationwide, a large UK building society, is facing pressure to improve how it involves its members in governance decisions. Concerns include bundled voting options, limited board seats for members, online-only meetings, and non-binding votes on executive pay.Key Facts
- Nationwide holds £382 billion in assets after acquiring Virgin Money for £2.9 billion.
- Stockport Labour MP Navendu Mishra sent a letter to Nationwide’s chair and the UK chancellor about governance concerns.
- Members ultimately own building societies, but their direct representation on boards remains rare.
- “Quick vote” options allow members to approve all recommendations with one click but may reduce careful review and favor current board members.
- One member running for a board seat has asked Nationwide to stop using quick votes at the upcoming annual meeting.
- Nationwide currently holds only online annual general meetings (AGMs), which may exclude members without internet access and limit question opportunities.
- The society does not hold binding votes on executive pay, unlike some listed banks; the CEO received a 43% pay rise up to £7 million last year without a binding member vote.
- Nationwide says quick votes are widely used and well received and online meetings have reversed falling attendance.
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