Nationwide board campaigner claims mutual ‘offered to secure him board role at rival’ (Sky News)
Mon 06 Jun 11:16
By Mark Kleinman
The Nationwide customer who is fighting for election to its board was offered its help to secure a role at another building society in return for dropping his campaign to join Britain’s biggest mutual, he has claimed.
Sky News has learnt that James Sherwin-Smith, who has been a vocal critic of Nationwide’s attempts to obstruct his efforts to join its board, held a telephone conversation with Jason Wright, the building society’s group secretary, during which Mr Wright implied that it could assist him with landing a directorship elsewhere.
The extraordinary claim will raise fresh questions about Nationwide’s governance and the tactics it has used to oppose Mr Sherwin-Smith’s election.
It has emerged two weeks before Nationwide’s annual meeting, at which more than 16 million members will be eligible to vote on board nominations.
Nationwide has told members to oppose Mr Sherwin-Smith’s election, with chairman Kevin Parry telling them that he does not have the required experience or skills to join the board of such a large and complex financial services group.
According to Mr Sherwin-Smith, a conversation took place between him and Mr Wright in the spring of last year, during which he was left with a clear impression that Nationwide would seek to identify a suitable board role for him at a smaller building society.
“The call with Jason Wright took me by surprise: the [Nationwide group] secretary had never called me before; all our previous correspondence had been by email, so I was naturally curious about why he wanted to speak,” he said.
“I interpreted what he said on that call – immediately after informing me that I had not received the necessary nominations to appear on the 2025 ballot – as an attempt to persuade me to pursue a board role elsewhere rather than continue campaigning for change at Nationwide.
“It struck me as extraordinary that the society secretary of one building society would suggest that it could help someone secure a board position with another.”
In its response to an enquiry from Sky News, a Nationwide spokesperson implied that their exchange had taken place in 2024, saying: “Our recollection from 2024 is that no link was ever made between offering support and Mr Sherwin-Smith’s intention to seek a nomination.
“We were following up an earlier discussion we had with Mr Sherwin-Smith when he indicated that he was open to advice and counsel about a possible route for him to a non-executive director career.
“We were simply being constructive in following up on that point.”
After Sky News published the story – and 10 days after the initial enquiry to Nationwide – the building society provided a further response through a spokesperson.
“No offer of any kind of role was made to Mr Sherwin-Smith in return for him dropping his campaign.”
The row over Mr Sherwin-Smith’s candidacy has escalated into an embarrassing reputational row for an organisation which claims to prioritise ethical behaviour in a way which differentiates it from the major high street banks.
“With hindsight, I think Nationwide’s board has misjudged both me and my motivations,” Mr Sherwin-Smith told Sky News.
“My concern has never been securing a board seat for its own sake; it has always been about protecting the mutual ethos of Nationwide, strengthening member representation and improving accountability.
“Far from discouraging me, that conversation only deepened my concern and strengthened my resolve to campaign for stronger governance across the building society sector.”
Mr Sherwin-Smith argues that this month’s ballot is effectively biased against him because Nationwide’s opposition to his nomination forms part of a “quick vote” default option available to members.
He wants to be elected as a member nominee because he argues it would improve accountability at the organisation, which last year bought fellow high street lender Virgin Money.
Nationwide has also been criticised over the multimillion-pound pay package awarded to its chief executive Dame Debbie Crosbie.
The mutual’s television ads have sought to draw a contrast with the “fat cat” behaviour of banking rivals – claims which drew a formal complaint from Santander UK.