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Nationwide set to approve £7m pay package for CEO

Crosbie's increased pay faces strong criticism for bypassing member voting rights.

July 20, 2025 at 12:02 PM

Storm brews over Nationwide chief executive’s pay package worth up to £7m

Nationwide Building Society's CEO pay sparks controversy among critics and members.

Nationwide faces backlash over £7m pay package for CEO

Debbie Crosbie, CEO of Nationwide Building Society, is set to receive a maximum pay package of £7 million, reflecting a 43% increase, despite backlash from critics. This pay raise is expected to be passed without any binding vote from members, leading to accusations that the mutual is straying from its founding principles. Critics argue that the decision represents a centralization of power within the organization, especially after its recent acquisition of Virgin Money for £2.9 billion without member consent. Nationwide maintains that the compensation is necessary to attract top talent and compete in the banking sector, though many believe it undermines the democratic foundations of the cooperative.

Key Takeaways

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Crosbie's pay package raises questions about member influence at Nationwide.

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Critics claim Nationwide is prioritizing corporate interests over member rights.

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The mutual's recent actions have sparked fear of a shift away from its founding values.

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Members feel sidelined as key decisions are made without their input.

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Nationwide's growth strategy may conflict with its democratic principles.

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Crosbie's leadership is praised by some but criticized by long-time members.

"Critics claim members have no say in anything at Nationwide."

This highlights frustrations among members regarding their influence in decision-making.

"If you ask members about executive pay, the response is likely to be lower."

Industry experts argue that members may not have the knowledge to judge pay rates appropriately.

"Nationwide is the most controversial of the mutuals, with low standards of governance."

This reflects broader concerns about the governance practices within the organization.

"Members should be educated and allowed to vote on pay, not treated as if they're too stupid."

This statement emphasizes the need for genuine member engagement.

The controversy surrounding Crosbie's pay highlights a growing tension between traditional mutual values and the pressures of modern corporate governance. Critics argue that as Nationwide seeks to solidify its market position and drive growth, it risks alienating its member base and straying too far from its cooperative roots. This ongoing conflict may prompt a reevaluation of how mutual organizations operate, especially concerning their governance structures and member involvement in decision-making processes.

Highlights

Nationwide's pay rise is a sign of lost democratic values.
Is Nationwide still a mutual if it ignores member voices?
The bigger the bank, the smaller the member's say.
Crosbie's pay reflects a shift from cooperative roots.

Concerns over governance and member representation

The significant pay raise for CEO Crosbie without member input raises alarms about governance standards and the dilution of member rights within Nationwide. Critics fear the organization is moving away from its foundational values of mutuality and transparency.

As Nationwide navigates these controversies, it remains to be seen how it will address member concerns.

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