Nationwide Building Society could soon have a customer on its board for the first time in nearly 25 years, after a long-standing member secured enough support to stand in the lender's annual ballot. James Sherwin-Smith, a 45-year-old from West Sussex, has gathered more than 250 peer nominations, allowing him to run alongside existing directors at the annual general meeting (AGM) in July.
Potential Historic Board Seat
If elected, Sherwin-Smith would become the first Nationwide customer—known as a member—to sit on the board since 2002, when the previous member-nominated director retired. The last time a member even appeared on the AGM ballot was 2005, though that candidate failed to secure enough votes.
Typically, board members are appointed by existing directors, making Sherwin-Smith's candidacy a rare challenge to the status quo. Nationwide has yet to decide whether to recommend his election to the wider membership. If it does not, his chances could be significantly hindered, as he would not be included on the automatic "quick vote" list that most members follow.
Concerns Over Democratic Roots
Sherwin-Smith is among a handful of members who have raised concerns that Nationwide's rapid growth has eroded its democratic foundations, leaving members with less say in operations. These concerns include the society's decision not to hold a member vote on its £2.9bn takeover of Virgin Money in 2024, while Virgin Money shareholders had a say. Nationwide also faced criticism last summer for refusing to give members a binding vote on a 43% pay rise for chief executive Debbie Crosbie, which pushed her total package to £7m.
Last year, Sherwin-Smith failed to secure a ballot spot despite gathering 600 signatures, highlighting the complex hurdles members face to propose nominations or resolutions. He stated: "At a time when Nationwide is integrating Virgin Money, 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."
Next Steps
Nationwide, which has 17 million members and over £377bn in assets, says 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 has not confirmed when it will decide whether to back Sherwin-Smith, but a decision could come in the next few weeks. He will undergo an internal vetting process before final AGM recommendations are made, which will determine the quick vote options.
Sherwin-Smith, an adviser and investor in financial technology companies, said he would consider giving up those roles to qualify for the board position. A Nationwide spokesperson confirmed: "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 is scheduled for 15 July.
