Nationwide could have first customer on board for nearly 25 years

Nationwide building society could have a customer on its board for the first time in nearly a quarter of a century after one of its longtime members secured enough support for a spot on the lender’s annual ballot.

James Sherwin-Smith will be up for board elections at Nationwide’s annual general meeting (AGM) in July, having gathered more than the 250 peer nominations necessary to run alongside existing directors.

If successful, the 45-year-old from West Sussex would be the first Nationwide customer – known as members – to sit on the board of the building society for 24 years, with the last having retired in 2002.

The last time a member-nominated customer was even on the AGM ballot was 2005, though they failed to secure enough votes to be elected to the board.

The building society’s board members are typically appointed by the existing directors.

Nationwide, which was founded in 1884 in south London as the Southern Co-operative permanent building society, has yet to make a decision on whether to recommend Sherwin-Smith’s election to the rest of its membership before the annual meeting.

If it does not, it could significantly hinder the prospects of a boardroom seat, given Sherwin-Smith would not be put on a list of automatic “quick vote” options that mirror board recommendations and that most members opt for.

Sherwin-Smith is one of a handful of members who have raised concerns that the building society’s rapid growth has compromised its democratic roots, leaving members with a much smaller say in its operations.

Those concerns included Nationwide’s decision not to hold a member vote over its £2.9bn takeover of Virgin Money in 2024, while the target’s shareholders had a say.

The building society also came under fire last summer for refusing to give members a binding vote on a 43% pay rise for its chief executive, Debbie Crosbie, that pushed her pay package to £7m.

Sherwin-Smith failed to secure a spot on the ballot last year, despite gathering 600 signatures, prompting criticism of the complex hurdles that members have to go through to put a nomination or resolution on Nationwide’s ballot.

Sherwin-Smith said: “At a time when Nationwide is integrating Virgin Money, I think this raises a wider question about member representation, mutual governance and how contested board elections should work in practice.

“With a place on the ballot now secured, my focus is on ensuring members have a clear and fair opportunity to make an informed decision about who represents them on the board.”

Nationwide, which has 17 million members and more than £377bn in assets, has previously said it regularly engages with a panel of 6,500 members and surveys 500,000 each year, as well as giving them a vote on director elections.

It did not confirm when it would make a decision on whether to back Sherwin-Smith but a decision could be made in the next few weeks. It is understood it will put him through an internal vetting process before finalising the AGM recommendations, which will determine the “quick vote” options.

Sherwin-Smith is an adviser and investor in financial technology companies, but said he would consider giving up those roles to qualify for the board position.

A Nationwide spokesperson said: “We received a submission from James Sherwin-Smith, which was checked against the society’s published rules. Mr Sherwin-Smith received 256 valid nominations, exceeding the threshold set out in the rules. He will therefore be included on the ballot at the society’s AGM.”

The AGM will be held on 15 July.