Nationwide pressed to address ‘emerging governance issues’ as AGM looms

Nationwide is under pressure to address “emerging governance issues” across the building society sector, amid concerns bosses are bundling voting options and failing to allocate board seats for members. The Stockport Labour MP Navendu Mishra has sent a formal letter to the chair of Nationwide, Kevin Parry, outlining growing unease over the way executives, including at Nationwide, have been engaging with members who ultimately own their building societies. A letter raising similar concerns was sent to the chancellor, Rachel Reeves, in recent weeks. Although the Labour government has been pushing ahead with reforms meant to deliver a manifesto pledge to double the size of the mutual sector, critics have raised concerns that some building societies including Nationwide have been letting their democratic values slip. “Their growth is exponential, which is fantastic”, Mishra said, as Nationwide confirmed it was holding £382bn worth of assets after its £2.9bn takeover of Virgin Money. “But obviously, we need to make sure that if Nationwide are always going on and on about how they are mutually owned … then we need to see that democracy,” Mishra added. The letter was sent weeks before Nationwide’s own annual general meeting (AGM), which will feature its first member-nominated candidate up for boardroom election this century. Mishra said that despite being member-owned, direct representation was still uncommon across the sector. …