Nationwide Building Society members have voted overwhelmingly in favour of changes to the building society’s remuneration report.
The vote, which took place at the organisation’s annual general meeting on 23 July, saw nearly 93% of members, its version of shareholders, vote in favour of its Report of the directors on remuneration, which was part of its 2013 Annual report and accounts, published on 22 May. This was up from a favourable vote of 88% in 2012.
The report showed no general salary increases for directors for 2013-14, apart from two executive directors who were awarded increases to reflect additional responsibilities. The two salary increases were from £470,000 to £520,000 and £470,000 to £500,000.
The vote accepted a range of other elements to the report, including:
- Bonus payments triggered for both the annual and medium-term schemes as a result of strong business performance.
- The chief executive officer requested a cap on his variable pay for 2012-13.
- Performance pay plans were simplified and the report enhanced to provide disclosure in line with best practice.
A spokesperson for Nationwide said: “The executive team delivered another strong set of results in a challenging economic environment.
“[It has] steered Nationwide on a continuing journey as a clear and compelling alternative to the banks, and [has] been instrumental in delivering growth.
“There is a fundamental link between performance and remuneration; we pay for performance, we recognise achievement and don’t reward failure.
“Nationwide continues to set remuneration levels in line with the size, scale and complexity of the business model. The maximum potential total compensation levels for our executive directors are substantially below the market median.
“Finally, while there has been a salary increase for two executive directors, reflecting increased responsibilities, the overall executive salary bill in 2013-14 will be lower than 2012-13 following a reduction in the number of roles.”