Nationwide: Democratic deficit (The Week)

My thanks to a supporter for bringing this to my attention.

Nationwide: democratic deficit

“Top marks tor perseverance,” said Nils Pratley in The Guardian. James Sherwin-Smith – a long-term customer campaigner for more transparent governance at Nationwide – has secured the necessary 250 nominations to get his name on the ballot paper for elections to the board of Britain’s biggest building society at its annual meeting in July. If successful, he will become the first customer to be voted onto the mutual’s board in nearly 25 years.

“There is something of a democracy deficit at Nationwide”, and ownership by the members “does not always translate into giving those members a real voice”. When Nationwide bought Virgin Money for £2.9bn in 2024, there was no poll of members, and they have no binding vote on boardroom pay. Another contentious measure is the use of a “quick vote” electronic system allowing members to tick a single box in favour of all the board’s recommendations. The board is perfectly entitled to oppose Sherwin-Smith, but it should make its case for doing so openly – without resorting to a “loaded voting system”.