Nationwide AGM 2023
June 2023 – This year the directors have decided to hold the AGM amongst themselves at their Swindon headquarters. Some members may be allowed to ask questions online. It will be convenient for them as they will have no need to leave the office and there will be no BSMA members around to make themselves a nuisance.
The directors have made a new claim about this building society. In their Annual Review they state:
“Our purpose: Banking – but fairer, more rewarding, and for the good of society. We focus on providing banking products and services for our customers ……”. But the legislation clearly lays down the purpose for which building societies exist.
The legislation states: “A building society must have as its only or principal purpose that of making loans which are secured on residential property and are funded substantially by its members. This criterion lies at the heart of what it is to be a building society and sets down its defining characteristics. It is known as the principal purpose test.”
However, the directors have often said that the Nationwide is different and as they own the society and they make the rules, no one can argue. With the aid of an ex-TSB director as the chief exec. and the overwhelming driving force of bonuses this society moves ever closer to being a full-blown bank.
CEO has, yet again, achieved the virtually impossible, stretching, extremely difficult, targets that were set for bonuses to be paid and as predicted has won the jackpot again at £3.47m. Pay includes awards for being No. 1 in customer service! As always, the exact details of this remain a mystery. Elsewhere online review sources such as Trustpilot tell a totally different story – where and how the Nationwide can be classed as No. 1 remains a mystery.
To emphasise the desire to become a bank a reward scheme, dubbed “Fairer Shares”, rewards those members with £100 for having a bank current account, others will get nothing. Loyal members will be able to open an uncompetitive savings account that is fixed for 2 years at a pathetic rate of just 4%. Which? have called it measly.
The directors claim that their intense “advertising is a cost-effective way of talking about Nationwide nationally. It raises awareness of our brand.” “We do that with less money than a number of our competitors.” Again, the source of the claim is not revealed to the “owners”. Other societies and banks use their far more attractive products to attract attention without throwing away members’ money on the extremely intense and expensive advertising campaigns used by the Nationwide.
The Nationwide has published a transcript of their AGM. As always the only part of interest is the Q & As.