Nationwide members denied veto on boss's 43% pay rise

Nationwide is under fire for refusing to give members a binding vote on a 43% pay rise for its chief executive, Debbie Crosbie, that could mean her pay package reaches up to £7m.

- Kalyeena Makortoff

Campaigners say it leaves the building society's members with fewer rights than the shareholders of listed banks and exposes a worrying "loophole" in building society rules.

Nationwide says that after its £2.9bn takeover of Virgin Money, Crosbie's pay should compete with that offered by banks such as Lloyds and NatWest. However, the board is offering members only an "advisory" vote at its annual meeting on 25 July, meaning there are no repercussions if they reject it.

Large high street banks are required to hold a binding vote on their pay policies at least once every three years, under laws governing large businesses listed on the London Stock Exchange. If shareholders reject the policy, they must revert to the old pay plan and put a revised deal to shareholders within 12 months.