New Nationwide bonuses amid Virgin Money storm

NATIONWIDE is poised for a tense annual meeting today that will see chief executive Debbie Crosbie cement her takeover of Virgin Money and put in rules to increase her own pay.

- Simon English

The board is recommending moves to pay the CEO and finance chief Chris Rhodes three times their salary in bonuses, up from a mere doubling now.

Critics who are against the £2.9 billion deal to buy Virgin — where Crosbie used to work — see this as a further sign that the building society is becoming ever more like the banks that Nationwide mocks in TV ads.

Nationwide’s 16 million members do not get a say on either the Virgin deal or the new pay deals, beyond an “advisory” role which can be ignored.

There are other adjustments to society rules, including a move to let directors stand past the age of 70 — director Phil Rivett is 69 and Allan Keir is soon 66. There is also a removal of the requirement on directors who become patients of mental homes to cease being in office.

The board will also be given new powers to raise capital and pursue deals without recourse to the members who in theory own the building society.