Nationwide accused of picking ‘unfair fight’ with member board candidate
Nationwide has been accused of picking an “unfair fight” with one of its members who has sought to clinch a seat on the building society’s board.
The mutual has opted not to recommend the candidacy of James Sherwin-Smith, who is running to be the first member to take a seat on Nationwide’s board in nearly 25 years.
The voting system at the building society’s annual general meeting – held on June 8 – will maintain its ‘Quick Vote’ system, which allows Nationwide’s over 9m members to instantly green light only candidates approved by the board.
Sherwin-Smith said: “The use of the Quick Vote mechanism is particularly concerning – setting this election up as an unfair fight – and creates a dangerous precedent for future elections at Nationwide and in other similarly governed organisations.”
He added: “Whatever the outcome, this is not about one candidate. It is about whether Nationwide Members retain meaningful democratic choice in the governance of their Society.”
A statement from Nationwide said Sherwin-Smith did not have “any relevant or practical experience of board-level governance” and “does not have experience of representing a broad and diverse membership base”.
It added he would “would not contribute effectively to board considerations, challenge or oversight on strategy”.
Kevin Parry, Chairman of Nationwide said: “No board, regardless of whether it is of a mutual or public company, should ever recommend the appointment of a director who does not have the skills and experience necessary to do the job.”
Nationwide member chose to run after Virgin Money deal
Speaking to CityAM’s Business as Usual podcast this week Sherwin-Smith detailed his journey to running for a board seat as stemming from a lack of transparency, particularly regarding the £2.9bn takeover of Virgin Money.
The mammoth deal shocked the City when it was first unveiled in 2024 but went on to stoke controversy as Nationwide members were not permitted a vote on it, raising questions around transparency.
“If this was a PLC, I think the equity analysts would be pouring over the details of this… I can’t think of another retail bank integration of this scale in recent times that has been less scrutinised,” he said.
Nationwide released its annual results last week where it booked a hefty jump in its annual income as the building society benefited from a boost in consumer lending and clawed out a bigger market share of mortgage balances.
The mutual recorded a 22 per cent jump in total income to £6.4bn, which was up from £5.2bn in the previous year, led by a more diverse balance sheet.
The jump came as consumer lending swelled to £11.6bn, from £11.1bn, primarily driven by a growth in its credit card division. Balances hit £8.1bn in the last financial year, up from £7.8bn.