Publique on Nationwide Building Society
December 2012 – “The Publique” take on practices of Nationwide directors as reported by the Guardian earlier in the year.
Nottingham Building Society to Take Over Shepshed Building Society
December 2012 – The directors of this small society have decided that it is no longer economically viable to continue independently.
Click here for BBC Report
Barnsley Building Society Windfalls
December 2012 – Yorkshire Building Society is distributing payments to eligible members of Barnsley Building Society following the recovery of money invested in two Icelandic banks which went into administration in 2008.
Click here for BBC Report
Nationwide Building Society Considers RBS Branches
October 2012 – The Nationwide BS is considering the possible acquisition of 316 RBS branches.
This follows the approval of its members for the society to introduce Core Capital Deferred Shares (CCDS). Nationwide closed 23 of its own branch offices in June this year.
This society is moving further away from traditional lending for house purchases and closer to becoming a bank in all but name.
Telegraph Report
A Hidden Way to Boost Nationwide Building Society’s Rates
September 2012 – Martin Lewis the Money Saving Expert reveals more tricks of the trade at Nationwide Building Society.
Money Saving Expert
Scottish BS to Take Over Century BS (Sale of the Century)
August 2012 – The directors of the tiny Century Building Society, with around 3400 members, have decided to call it a day and have thrown in their lot with the Scottish Building Society.
Click here for Century Announcement
HM Treasury Consultation on Changes to Building Society Legislation
July 2012 – The Treasury has published a consultation document seeking to introduce changes to the Building Societies Act to enable societies to raise more funding to compete with banks and to provide a service to small and medium size businesses.
The Treasury’s vision for the sector, which will go to consultation, sets out how the recent recommendations of the Independent Commission on Banking will apply to the building society sector.
You do not need to only respond to set questions. You can always present your, thoughts, opinions, views and concerns including the governance of building societies.
HM Treasury consultation – www.hm-treasury.gov.uk/consult_future_building_societies.htm
Responses to the consultation should be sent to: building.societies@hmtreasury.gsi.gov.uk
The consultation closes on 6th September 2012.
“Does New Capital Compromise Mutuality?” – Mortgage Finance Gazette July 2009
“Building Society Investors Could Get Seats on the Board” – The Observer March 2010
“Building Society Capital & Related Issues” – HM Treasury Discussion March 2010
“Additional Guidance for Building Societies” – FSA Consultation June 2009
“Building Societies Funding” – HM Treasury Consultation January 2009
Nationwide Building Society AGM
June 2012 – The Nationwide Building Society directors (On Your Side!) will be holding their AGM at the Bridgewater Hall, Manchester at 11am on Thursday 19th July. It is customary for the directors to expect members to approve another large pay increase. Unfortunately it is also customary for members not to vote against the greed.
The Queen’s speech included planned legislation to make votes on boardroom pay binding rather than advisory as at present. However the proposals only referred to shareholder owned companies and did not refer to mutuals.
The BSMA has called upon the government to bring in legislation that puts members of building societies on a slightly more equal footing with shareholder owned companies by making votes on directors pay binding. The BSMA also seeks to have legislation that makes building societies more democratic and to prevent directors from producing ballot papers that are biased in favour of themselves.
The BSMA also calls upon the Nationwide Building Society directors to lead the way for mutuals by making their vote on pay binding and keeping their self-awarded pay increases to levels closer to those of the majority of the society’s employees (4.4% increase). This might demonstrate that their latest rubbish catchphrase “On Your Side” is not just more misleading drivel.
The chief executive of the Nationwide Building Society took an extra £175,000 of members money last year, an increase of 21% in basic pay and the chairman helped himself to another £50,000 an increase of 25%. Both are part-time jobs. All this despite a massive reduction (one third) in profits.
NEVER NEVER USE THE “QUICK VOTE”
A vote “For” anything will make no difference whatsoever.
The only meaningful action that you can take is to vote “AGAINST” all resolutions including all directors.
Exaro Report on Nationwide Directors’ Pay by Steve Lodge
The Guardian
Nationwide Building Society 2011 AGM
From the Mail Online
Money Marketing
London Evening Standard
But is it Fair to Criticise the Directors?
Nationwide Building Society Core Capital Deferred Shares
June 2012 – This society is seeking members’ approval of a resolution to introduce a new ‘instrument’ for core capital funding to be called Core Capital Deferred Shares (CCDS) following the withdrawal of PIBS.
CCDS are designed principally for capital raising using the wholesale money markets and will be sold to institutional investors through investment banks on behalf of Nationwide.
Individual members will not be able to buy CCDS.
Nationwide Building Society Scales up on Executive Pay
June 2012 The Guardian reports on the disproportionate amounts of members’ money that the directors help themselves to at this society and how they continue to justify their greed. The Chief executive now receives approximately 80 times the amount paid to the average Nationwide Building Society employee.
The Guardian Report
Voting
It is time once again for building societies to send out the annual insult to members – the Voting Form.
The “Quick Vote” or “Fast Track” vote is now a standard on many building society voting forms. This trick is about as near as possible that the directors can get to sending an insult to every member.
You will not find this slick trick or for that matter any of the other tricks that many building society directors seek to use on the voting forms of any plc.
See One of the Most Biased Voting Papers – Progressive Building Society
Nationwide Building Society Closes 23 Branch Offices
June 2012 – Thisismoney reports that this building society is closing nine Nationwide branches and 14 branches of societies that have been taken over by the society.
Thiismoney Gives the Full List of Closures
Vote to Block Pay Greed of Mutual Chiefs
May 2012 – “Although competition from these mutuals is, of course, welcome (I am a longstanding advocate of mutuality) we should not be hoodwinked into thinking that these organisations are run solely for the benefit of customers. They are also run for the benefit of the executives in the boardroom.”
As recommended by Jeff Prestridge – Thiismoney
Read more at Thiismoney
President of CBI Says Stamp Out Excessive Pay
May 2012 – Sir Roger Carr said – The “hard truth” was that “at a time when business could not matter more, it could not be trusted less.”
Speaking at the CBI annual dinner in London last night, the Centrica chairman said: “In the way we pay ourselves, present ourselves and conduct ourselves, now is the time to be more transparent, more responsible and more accountable.
“High pay must be for exceptional performance, not mere attendance. Corporate and social responsibility must be an attitude running through a business, not a box to be ticked.”
From the Telegraph – By Angela Monaghan, Economics Correspondent
Read more
Our Comment – accountable, transparent, high pay only for exceptional performance? Hmmm – obviously not applicable to building societies.
CEO Designate Financial Conduct Authority (FCA) Warns Building Societies
May 2012 – “Martin Wheatley warned building societies directors about risks at the annual BSA conference.”
“Do not assume that being a mutual assures you the luxury of knowing the business is getting the best for its customers.”
“Wheatley cited the example of Norwich & Peterborough, which was fined £1.4m in April 2011 for misselling Keydata products to 3,200 members and had to pay out around £51m in redress.”
From Money Marketing Report
‘Grotesque’ Greed at Skipton Building Society
April 2012 – The executives caused an outcry 16 months ago when they abandoned a mortgage rate pledge to 64,000 of its members.
Nevertheless last year David Cutter, 49-year-old chief executive enjoyed a 22 per cent increase in total remuneration after a 9 per cent rise in 2009. Last year’s reward was boosted by a £68,000 bonus, part of a £121,000 bonus pot paid to Skipton’s executive directors.
Former finance director Tom Wood, who resigned last September, just a year after joining received a compensation payment of more than £262,000. When he was appointed, he received nearly £98,000 in relocation expenses. For the year he spent at Skipton bringing his total pay to £714,000.
Read more
As Savers Suffer, the Building Society Bosses Still Prosper
April 2012 – “Despite customers suffering from a double-whammy of record low saving rates and rising mortgage rates, many of them were awarded handsome pay rises or lucrative annual bonuses.”
Daily Mail Report by Jeff Prestridge on the continuing greed in the boardrooms of building societies while members continue to suffer lower and lower interest rates.
Yorkshire Where it Pays not to Work
March 2012 – The board of the Yorkshire Building Society invites us to “have your say – it’s easy”.
The former chief executive, Iain Cornish, left the service of the Society at the end of 2011. This “was an entirely personal decision on his part” (Chairman’s statement). But he is being paid up until the 1st July 2012 as he is entitled to receive this in accordance with his contract – £250,000 for six months’ non-work!
His replacement, Chris Pilling, has been recruited from HSBC. He will receive a golden handshake of £156,000 to compensate him for lost earnings on leaving HSBC.
Hopefully there are going to be several crosses in the ‘Against’ boxes on the voting form.
Leeds Building Society Gravy Train
February 2012 – The pay for the chairman of Leeds BS has been increased by no less than 76%. The chairman R A Smith was taking £71,000 of members’ money per year but is now taking £125,000. That is about equivalent to a fulltime Chancellor of the Exchequer.
The chief executive I W Ward came in for strong criticism last year after he had taken a pay increase of 11%. This time he has taken even more at over 12%. Mr Ward left the society in September last year but not without the board kindly helping him to another £100,000 of members’ money, for old times sake, to be spread over 3 years .
Mr Ward’s bonus was more than his basic pay! On checking the accounts one may find it difficult to detect what it was that he did in order to receive so much. But of course it is a “mutual” society.
Ban Bonuses
January 2012 – Simon Jenkins reports in the Guardian.
“Bonuses became rampant wherever size allowed “HR consultants” with opaque reward packages to run riot”.
“Top executives are said to be unlike ordinary workers in needing a Pavlovian prize at the end of each year to tempt them to do well what they have already been paid to do well”.
Guardian Report