James Sherwin-Smith, a Nationwide customer seeking election to the building society's board, has accused the lender of unfair treatment and undermining democratic governance. Nationwide confirmed it would give members a default 'quick vote' option that includes a vote against his candidacy at the annual meeting in July.
Nationwide, Britain's largest building society, is mutually owned by its member-customers. The last member to sit on the board retired in 2002. Sherwin-Smith argues his election would improve accountability, but chair Kevin Parry stated his election would not be in the best interests of the society due to lack of experience.
Sherwin-Smith said the quick vote system, used by 87% of voters last year, skews the election against him. He called the move a 'dangerous precedent for mutuals and democratic governance'. Labour MP Navendu Mishra has also criticised governance issues in the sector.
Nationwide blocked Sherwin-Smith from altering election materials to advise members against using the quick vote if they support him. Sherwin-Smith, a former executive at Vocalink and management consultant at Oliver Wyman, rebutted criticisms of his experience, saying boards benefit from diversity of perspective.
Parry defended the board's position, stating no board should recommend a director lacking necessary skills. Members will have the final decision through the normal voting process.
