Nationwide Boss’s £7M Pay Sparks Outrage Among Members
So, let’s talk about what’s been stirring up quite a bit of controversy at Nationwide Building Society. At their annual general meeting recently, the CEO, Debbie Crosbie, was approved for a pay package worth up to £7 million . Yes, you heard that right—seven million pounds. That’s a 43% increase from her previous potential compensation. Understandably, this didn’t sit well with a number of Nationwide’s members, who weren’t shy about voicing their concerns.
The AGM was held online, and several members took the opportunity to call out what they saw as hypocrisy. One member, Ms Andrews, put it bluntly: “No one needs to earn more than £1 million, and certainly not £7 million.” Another member, Mr Fisher, asked whether Crosbie saw the irony of receiving a bonus that most people couldn’t even spend in a lifetime.
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One particularly strong comment came from Dr Standon, who described the new package as “an obscenity.” She pointed out that Nationwide already had the option to pay Crosbie nearly £5 million, and questioned the need to stretch that even further. She argued that a mutual like Nationwide—one that claims to put people before profits—should be setting a different example, not chasing executive pay parity with high street banks.
Now, to defend the decision, Nationwide's board said that the raise reflects the additional responsibilities following their £2.9 billion takeover of Virgin Money. Tracey Graham, who heads the remuneration committee, explained that although Nationwide isn’t a bank, it’s now the UK’s second-largest mortgage lender and savings provider. She said that to attract and retain top talent, they have to offer competitive packages—comparing themselves to giants like Lloyds and NatWest.
But here’s where it gets even more contentious: despite all this pushback, the vote passed overwhelmingly. Nearly 95% of those who voted supported the new pay policy. Still, over 34,000 members voted against it—a small portion, but not insignificant.
And if that weren’t enough, the AGM also revealed a £316 million accounting error that had initially gone unnoticed by both Nationwide and its auditor, EY. It was actually a member, Mr Dugan, who spotted the mistake. While Nationwide insisted that the error didn’t affect overall profits, Dugan questioned why EY was still being reappointed after such a significant oversight. The board maintained that they were satisfied with EY’s performance overall.
So, while the leadership insists this is about fairness and keeping pace with the market, a lot of members clearly feel the move strays from Nationwide’s core principles. It’s a clash between corporate reality and mutual values—and it’s sparking a conversation that isn’t going away anytime soon.
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