Nationwide Building Society's Annual General Meeting (AGM) is set to take place next week, with 16 million members eligible to vote on board nominations. However, a dispute has emerged following allegations from James Sherwin-Smith, who claims that Nationwide offered him assistance in securing a directorship at another company if he withdrew his current bid for a seat on the board. Mr Sherwin-Smith, who is on the ballot for next week's AGM, alleges that Nationwide's general secretary, Jason Wright, made the offer during a phone call in April.
Nationwide has firmly denied these claims, stating that "no offer of any kind was made to Mr Sherwin-Smith in return for him dropping his campaign." The mutual has also expressed concerns about Mr Sherwin-Smith's candidacy, arguing he lacks "any relevant or practical experience of board-level governance" and would "not contribute effectively to board considerations, challenge or oversight on strategy." This stance is supported by Kevin Parry, Chairman of Nationwide, who stressed that no board should recommend a director without the necessary skills and experience.
Mr Sherwin-Smith's bid marks a rare challenge to Nationwide's board, as he would be the first member to take a seat in 25 years if successful. He claims to have submitted 700 endorsements, significantly exceeding the 250 nominations required for the ballot. However, he also alleges that Mr Wright pushed back on him receiving these "valid" nominations during their April phone call.
The current dispute follows Nationwide's recent £2.9 billion takeover of Virgin Money, a deal that reportedly surprised the City and angered some Nationwide members who were not permitted to vote on it. Mr Sherwin-Smith has previously voiced concerns about a perceived lack of transparency, particularly regarding this acquisition, stating that the integration of a retail bank of this scale has been "less scrutinised" than expected.
Nationwide's 'quick vote' system, which allows over nine million members to instantly approve only board-endorsed candidates, remains in place for the upcoming AGM. This system has been a point of contention for some, as it potentially streamlines the voting process for candidates already approved by the existing board, rather than those challenging the status quo.