James Sherwin-Smith, a Nationwide customer, has vowed to continue his campaign for a seat on the building society's board after failing to secure enough votes at the annual general meeting (AGM) on Wednesday. He secured approximately 12.5% of the vote, representing support from 75,939 members, but fell far short of the 50% threshold required to become the first customer to join the 142-year-old lender's board in nearly 25 years.
Board Rejects Candidate's Experience
The board of Nationwide, which manages £368bn in assets, had vetted and rejected Sherwin-Smith's candidacy, stating that the 45-year-old former Oliver Wyman consultant lacked the necessary experience to help direct the high street lender. The board recommended that members vote against him, and its recommendations were bundled into a single "quick vote" option that allowed members to back all boardroom views with one click. Last year, 87% of about 670,000 votes cast used this system, and Nationwide has around 19 million members, though only a fraction typically vote.
Fresh Campaign for Reform
Despite the setback, Sherwin-Smith announced he would stand for election again at the 2027 AGM and immediately begin gathering member nominations. He also encouraged other members to come forward as board candidates, offering to share his experience. Building societies are among the few UK sectors where customers legally have the right to nominate peers for board elections, but no member-nominated directors currently sit on any of Britain's 42 building society boards. The last member to sit on Nationwide's board retired in 2002.
Proposed Rule Changes
Sherwin-Smith also plans to launch a campaign to trigger a special general meeting aimed at reforming Nationwide's rules. His proposals include ending the quick vote system, guaranteeing at least two board members are nominated by members, and introducing binding votes on executive pay, similar to shareholder-owned companies. The special meeting would also call for reinstating hybrid AGMs, which are currently online-only, and giving members a "meaningful vote on major strategic decisions" to avoid controversies such as the £2.9bn takeover of Virgin Money.
AGM Highlights Governance Concerns
At the AGM, Nationwide bosses faced questions about governance, rising executive pay, and the board election process. About 95% of votes supported Nationwide's pay report, which recommended by the board, after the building society nearly doubled CEO Debbie Crosbie's pay to £4.7m. Sherwin-Smith said, "The question is no longer whether governance at Nationwide should evolve, the question is how quickly members want that to happen. I intend to spend the coming year helping members answer that question."
Nationwide responded: "This year's AGM demonstrated the strength of engagement across Nationwide's membership, with the highest attendance in 15 years. The board's recommendations received overwhelming support and 88% of our members decided that electing Mr Sherwin-Smith to Nationwide's board would not be in the best interests of the society or its members."
