James Sherwin-Smith, a Nationwide customer, has vowed to continue his campaign for change at the building society after failing to secure a seat on its board. At the annual general meeting on Wednesday, he received approximately 12.5% of the vote, representing support from 75,939 members, far short of the 50% threshold required to become the first customer to join the board in nearly 25 years.
Board Rejection and Quick Vote System
The board of Nationwide, which manages £368bn in assets, had rejected Sherwin-Smith's candidacy, stating he lacked the necessary experience to direct a major high street lender. They recommended members vote against the former Oliver Wyman consultant. This recommendation was bundled into a single “quick vote” option, which last year accounted for 87% of about 670,000 votes cast. Nationwide has around 19 million members, but only a fraction typically vote.
Plans for Fresh Campaign and Governance Reform
Sherwin-Smith announced he would stand for election again at the 2027 AGM and begin gathering member nominations immediately. He also encouraged others to become board candidates, offering to share his experience. Additionally, he plans to launch a campaign to trigger a special general meeting aimed at reforming Nationwide's rules. His proposals include ending the quick vote system, guaranteeing at least two board members nominated by members, introducing binding votes on executive pay, reinstating hybrid AGMs (currently online-only), and giving members a meaningful vote on major strategic decisions, such as the £2.9bn takeover of Virgin Money.
AGM Questions and Executive Pay
At the AGM, Nationwide bosses faced questions about governance, rising executive pay, and the board election process. About 95% of votes supported Nationwide's pay report, which recommended nearly doubling CEO Debbie Crosbie's pay to £4.7m. Sherwin-Smith stated, “The question is no longer whether governance at Nationwide should evolve, the question is how quickly members want that to happen. I intend to spend the coming year helping members answer that question.”
Nationwide's Response
Nationwide responded: “This year’s AGM demonstrated the strength of engagement across Nationwide’s membership, with the highest attendance in 15 years. The board’s recommendations received overwhelming support and 88% of our members decided that electing Mr Sherwin-Smith to Nationwide’s board would not be in the best interests of the society or its members.”
Context and Significance
Building societies are owned by their members and legally allow customers to nominate peers for board elections. However, no member-nominated directors currently sit on any of Britain's 42 building society boards. The last member to sit on Nationwide's board retired in 2002. Sherwin-Smith's campaign highlights ongoing tensions between member democracy and board control.
