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Yahoo
2 days ago
- Business
- Yahoo
Nationwide boss's £7m pay deal ‘not about greed', says chairman
Nationwide has defended a £7m pay deal for its boss Dame Debbie Crosbie, saying the large sum was not about 'personal greed' after it was approved by members. Kevin Parry, the chairman of the building society, told Nationwide's annual meeting on Friday that the pay plan was 'fair' compared to the salaries at rivals – despite one Nationwide member labelling it 'an obscenity'. The mutual has come in for fierce criticism in recent months amid concerns that the building society is adopting similar practices to the shareholder-owned banks. Nationwide is Britain's largest building society, with 16m members who each take a share of its profits as mutual owners of the building society. Mr Parry told Nationwide's annual meeting, which was held online, that the directors including Dame Debbie were motivated by factors other than money. 'For the avoidance of doubt, I'm very confident in saying this is not about personal greed. This is about equity with people that do similar jobs elsewhere. I don't think that money is the primary motivation. And it's not the case that they have themselves asked for more money,' he said. Alongside the pay deal, Dame Debbie's acquisition of Virgin Money last year and the lack of members on the board has led to a campaign from some quarters against her leadership. Since joining from TSB two years ago, the Scottish chief executive has cemented Nationwide's status in the upper echelons of British finance, and it now ranks number two to Lloyds Bank in the mortgage market. However, a Nationwide member who identified herself as Dr Standon used the meeting to accuse the board of being driven by money because of its aggressive growth. She said: 'Your remuneration policy and your explanation for it, including in this meeting, suggests that unfortunately, your executive team are primarily motivated by money.' Dr Standon branded it an 'obscenity' that Nationwide had decided to increase the pay, adding: 'One would expect the Nationwide to set an example to others.' Tracey Graham, the chairman of Nationwide's remuneration committee, said the pay packages were needed to prevent top executives from leaving the building society, citing Lloyds Bank's pay deal for Charlie Nunn, its chief executive, which is 25pc greater than Dame Debbie's pay. 'I have never had any pressure or any requests from any member of the executive or senior leadership team about their pay. What we do as a committee is stand back. We look at all of the market data, including that is banks and building societies,' she said. The pay deal was backed by members, with only 5pc voting against the new pay policy. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
4 days ago
- Business
- Telegraph
Nationwide boss's £7m pay deal ‘not about greed', says chairman
Nationwide has defended a £7m pay deal for its boss Dame Debbie Crosbie saying the windfall is not about 'personal greed' after it was approved by members. Kevin Parry, the chairman of the building society, told Nationwide's annual meeting on Friday that the pay plan was 'fair' compared to the salaries at rivals – despite one Nationwide member labelling it 'an obscenity'. The mutual has come in for fierce criticism in recent months amid concerns that the building society is adopting similar practices to the shareholder-owned banks. Nationwide is Britain's largest building society, with 16m members who each take a share of its profits as mutual owners of the building society. Mr Parry told Nationwide's annual meeting, which was held online, that the directors including Dame Debbie were motivated by factors other than money. 'For the avoidance of doubt, I'm very confident in saying this is not about personal greed. This is about equity with people that do similar jobs elsewhere. I don't think that money is the primary motivation. And it's not the case that they have themselves asked for more money,' he said. Alongside the pay deal, Dame Debbie's acquisition of Virgin Money last year and the lack of members on the board has led to a campaign from some quarters against her leadership. Since joining from TSB two years ago, the Scottish chief executive has cemented Nationwide's status in the upper echelons of British finance, and it now ranks number two to Lloyds Bank in the mortgage market. However a Nationwide member, who identified herself as Dr Standon, used the meeting to accuse the board of being driven by money because of its aggressive growth. She said: 'Your remuneration policy and your explanation for it, including in this meeting, suggests that unfortunately, your executive team are primarily motivated by money.' Dr Standon branded it an 'obscenity' that Nationwide had decided to increase the pay, adding: 'One would expect the Nationwide to set an example to others'. Tracey Graham, the chairman of Nationwide's remuneration committee, said that the pay packages were needed to prevent top executives from leaving the building society, citing Lloyds Bank's pay deal for Charlie Nunn, its chief executive, which is 25pc greater than Dame Debbie's pay. 'I have never had any pressure or any requests from any member of the executive or senior leadership team about their pay. What we do as a committee is stand back. We look at all of the market data, including that is banks and building societies,' she said. The pay deal was backed by members, with only 5pc voting against the new pay policy.
The Guardian
4 days ago
- Business
- The Guardian
Nationwide boss's £7m pay package is an ‘obscenity', says member of mutual
A £7m pay package for the Nationwide chief executive, Debbie Crosbie, has been labelled an 'obscenity' and hypocritical by members of the mutual, even as it gained approval at the building society's AGM on Friday. Concerned members who tuned into the online-only meeting on Friday morning criticised the board's plan to increase Crosbie's maximum payout by 43%, saying the move was out of touch and did not align with the mutual's principles. One member, Ms Andrews, said: 'No one needs to earn more than £1m in salary, and certainly not £7m.' Another member, Mr Fisher, asked 'Does the CEO see both the irony and the hypocrisy of the size of her bonus: an amount in one year that most people would struggle to spend in a lifetime?' Meanwhile, a member identified as Dr Standon said that Nationwide already had the option of paying Crosbie up to £4.8m, and that pushing that figure to £7m was 'an obscenity'. 'One would expect Nationwide to set an example to others,' she said. Nationwide argued that Crosbie's pay rises reflected new demands after its £2.9bn takeover of Virgin Money, and its remuneration should be close to packages offered by rivals including Lloyds Banking Group and NatWest. 'We pay more than most building societies, but then again, we are larger,' the head of Nationwide's remuneration committee, Tracey Graham, said. 'We are five times larger than Coventry, we are more complex, and we are more important to the UK economy than other building societies … We are now the second largest mortgage lender and savings provider in the UK, and yet we pay less than compared to the high street banks. 'Our job is to ensure that we have the very best leaders here at Nationwide, and we do operate in a competitive marketplace. That is what we need to pay them, for us to believe that we are paying them equally or fairly.' Standon acknowledged that Nationwide had done 'lots of good things for members … and it's commendable that you followed through on the principles behind mutuality by not prioritising profit'. But she said that while the building society claimed to value people over profits, its justification for the rise 'suggests that unfortunately, your executive team are primarily motivated by money'. 'If they do leave purely because of the money, then, is it not the case that they were not in line with Nationwide principles in the first place?' Standon asked. The Nationwide chair, Kevin Parry, defended the building society's bosses saying: 'I don't think that money is the primary motivation … I'm very confident in saying this is not about personal greed. This is about equity with people that do similar jobs elsewhere.' Members ultimately gave the green light to the pay policy, and 627,982, or 94.8%, voted in favour. Nationwide said 34,492 members, accounting for 5.2% of voters, rejected the new pay package. Nationwide's board was criticised by one member over the fact that members were not given a binding votes. Parry, confirmed that while votes to re-elect board members are binding – meaning members have a final say – Nationwide is not required to hold binding votes on pay under building society rules. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The board was also forced to admit during the livestreamed AGM that a £316m accounting error was missed by the building society and its auditor EY, and only came to light as a result of one of its eagle-eyed members, Mr Dugan. Nationwide explained that while it did force the building society to correct its 2024 results, the mistake related to the way it had deducted expenses from its income, but did not affect profitability. Dugan pushed the matter, saying the error was six times larger than the £55m threshold at which errors are deemed material, meaning the point at which they could end up influencing business decisions. He asked why Nationwide was willing to reappoint EY on that basis. 'We were very grateful last year when you identified the issue,' the chair of Nationwide's audit committee, Phil Rivett, said during the AGM. However, he said the society was still 'very satisfied with the quality of the work they [EY] do, and the challenge that they provide to management on accounting judgments and issues.'
The Guardian
20-07-2025
- Business
- The Guardian
Two UK pro-Palestine organisations have bank accounts frozen
At least two grassroots pro-Palestine organisations in the UK have had their bank accounts frozen, raising fears about a wider attempt to silence voices speaking out about Gaza. Greater Manchester Friends for Palestine (GMFP) and Scottish Palestine Solidarity Campaign (PSC), which both organise peaceful protests and vigils, have had access to their funds cut off indefinitely by Virgin Money and Unit Trust bank respectively. The Guardian understands a local PSC branch in England has also had its bank account frozen but was unable to confirm it directly. Coming amid the banning of Palestine Action earlier this month and the arrest of more than 100 people for showing support for the group, and the threatened arrest of a peaceful protester for having a Palestine flag and 'Free Gaza' sign, it has amplified concerns about a crackdown on critics of Israel. Owen Cooper, co-treasurer of GMFP, said the group, which lists bike-riding among its activities, has been marching peacefully for more than a year and a half without incident or criminal activity but Virgin Money refused to say why its account had been frozen. 'If it's purely the fact that we have Palestine on the bank account name, I think it's a very worrying sign,' said Cooper. 'It would be not only hugely worrying but hugely disappointing to think that a country that values freedom of speech, that is a liberal democracy can be acting like this and that ordinary, decent people with a conscience are being regarded as extremists. 'What could the bank be thinking that we've done? Certainly nothing that the police believe is a crime.' He said the freeze meant that GMFP could not send money to Gaza and the West Bank to help those in need. 'They're actually preventing aid and support going into Gaza, and it's going in for food and medical supplies,' said Cooper. 'We don't have access to F-35 jets or 500lb bombs that we're funding.' Unity Trust bank says its aim is to be 'the bank of choice for all socially minded organisations in the UK', including charities and trades unions. But Mick Napier, from Scottish PSC's finance committee, said it had acted disgracefully. He said Scottish PSC was told the reason for its account being frozen last month was that it had a button on its website to donate to Palestine Action before the group was banned on 5 July. But the button was removed when Palestine Action was proscribed and yet the account had not been restored, said Napier. 'It's shocking,' he said. 'It's absolutely disgraceful that a campaign like ours [has been treated like this]. We've been operating for 25 years. Palestine Action we supported until they were proscribed. It came out the blue [the freezing of the account], and we were very disappointed. We think it's very bad practice. 'We can't get into our cash at all. We've had to use other means, very inconvenient means to pay bills and generally operate, it's been extremely burdensome.' The Guardian asked both banks for the reasons for the accounts being frozen and if there had been any external influence. Both said they were unable to comment on individual customer accounts. A Virgin Money spokesperson added that there were 'a variety of reasons why we may decide, or be required, to suspend or close an account in order to comply with applicable laws and regulations'. A Unity Trust bank spokesperson said it was 'a politically neutral organisation. Our mission and values underpin our commitment to operating with integrity'. They added: 'Unity has a diverse customer base that represents a broad range of communities.'
Scottish Sun
18-07-2025
- Business
- Scottish Sun
Santander customers FUME over ‘disgusting' £120 fee for key bank account after being promised it would be ‘free forever'
The bank first tried to introduce fees for these accounts in 2012 CHARGED UP Santander customers FUME over 'disgusting' £120 fee for key bank account after being promised it would be 'free forever' Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) SANTANDER customers are outraged after the bank revealed it will start charging £120 a year for an account it promised would be "free forever". Thousands of small business and self-employed account holders are facing £9.99 monthly charges from October. Sign up for Scottish Sun newsletter Sign up 1 Several other banks, such as Virgin Money, Monzo, and Co-operative Bank, continue to offer free business banking Credit: Getty This comes despite written assurances that their accounts would always remain free of fees. Santander's move has left customers feeling betrayed. Customers have taken to social media to vent their anger. One user said on "Promised me free business banking forever in writing, and now they want to charge £9.99 a month. Is this even legal?" Another branded the move "absolutely disgusting". The changes will impact three types of business accounts: 1|2|3 Business Current Accounts, Business Everyday Current Accounts, and Business Current Accounts. Santander said that the "free forever" promise only applied to accounts offered by Abbey and Alliance & Leicester before their 2008 merger. The bank first attempted to introduce fees for these accounts in 2012 but backed down after customers threatened legal action. However, these accounts were shifted to the Business Everyday account in 2015, which did not include the "free forever" promise. From October 1, these accounts will be closed, and customers will be automatically switched to Santander's new Business Current Account – Classic. Switch bank accounts for free perks This migration comes with new fees and charges that could significantly impact businesses, especially those handling large cash deposits or relying on cheque transactions. Under the new structure, every Business Current Account – Classic will incur a £9.99 monthly fee, regardless of the type of account customers previously held. While some accounts were free, others offered additional benefits with charges as high as £40 per month. Several other companies, such as Virgin Money, Monzo, and Co-operative Bank, offer free business banking. A spokesperson for Santander said: "The business banking landscape has changed significantly over the last decade. "As such, we are simplifying our business banking offering as the first step to ensure that we can sustainably and efficiently evolve to better meet the needs of our business customers in the future." Santander Business Current Account – Classic charges SANTANDER has also revised other charges that could hit businesses hard. For example: Cash deposits : Free up to £1,000 per month via Santander cash machines, but £1.25 per £100 for anything over that. Deposits made at Santander branches or Post Office counters will also cost £1.25 per £100. : Free up to £1,000 per month via Santander cash machines, but £1.25 per £100 for anything over that. Deposits made at Santander branches or Post Office counters will also cost £1.25 per £100. Cash withdrawals : Free at Santander cash machines, but £1.25 per £100 withdrawn at branch counters or Post Office counters. : Free at Santander cash machines, but £1.25 per £100 withdrawn at branch counters or Post Office counters. Cheque deposits: £0.70 per cheque. Overdraft fees are also set to change, adding further financial strain for some customers. What else is happening at Santander? The bank is closing its 123 Lite current account, which offers up to 3% cashback on household bills for a £2 monthly fee, on August 21. Customers affected by the closure will be automatically switched to Santander's Everyday Current Account. This account has no monthly fee but does not include cashback benefits. The 123 Lite account has not been available to new customers since 2022, however, hundreds of thousands still rely on the current account. The 123 Lite account allowed bill payers to earn up to 3% cashback, capped at £15 per month, on expenses like council tax, mobile phone bills, energy, and water. However, if you still have a 123 Lite account, cashback will stop automatically, and you will no longer need to pay the £2 monthly fee from August 21. If you're looking to keep cashback perks, the Everyday Current Account you'll be switched to won't be suitable, as it doesn't offer any cashback features. Instead, customers who want to stay with Santander may want to explore the Edge or Edge Up accounts. The Santander Edge account offers 1% cashback on certain household bills and debit card spending at supermarkets, petrol stations, and on travel. This account has a £3 monthly fee, with cashback capped at £10 per month. For a higher cashback limit, the Santander Edge Up account costs £5 per month and allows you to earn up to £15 per month on both bills and debit card spending. To keep these accounts active, Edge customers must deposit at least £500 per month, while Edge Up customers need to deposit £1,000. However, from September 9, cashback on supermarket, fuel, and travel spending will be removed for both accounts. Customers will only continue to earn 1% cashback on household bills like council tax and utilities. If you're looking to maximise your cashback, there are other options available. For example, American Express' Cashback Everyday Credit Card offers an impressive 5% cashback on purchases for the first five months (up to £125). What is cashback? CASHBACK is a type of reward offered by banks, credit card providers, and retailers where customers receive a percentage of their spending back as cash. Essentially, it's a way to earn money while making purchases. For example, if your card offers 1% cashback and you spend £100, you'll earn £1 back. Cashback can be credited to your account, deducted from your balance, or saved up for future use, depending on the provider's terms. It's often offered on everyday purchases, such as groceries, fuel, or online shopping, and may be part of a promotional deal or an ongoing benefit of your account. However, remember to check the terms and conditions, as some transactions may not qualify for cashback rewards. By using cashback offers wisely, you can usually make your money go further on purchases you'd already be making.
