Nationwide Building Society is under scrutiny following the announcement of a proposed bonus plan that could see its Chief Executive Officer, Debbie Crosbie, receive a pay package of up to £6.9 million. This marks a 43% increase from her previous maximum potential payout of £4.8 million. The proposed compensation includes an annual bonus of up to 150% of her current £1.1 million salary, along with long-term incentive awards tied to performance. The proposal comes in the wake of Nationwide’s £2.9 billion acquisition of Virgin Money, a move that significantly expanded the CEO’s responsibilities and the overall size and complexity of the organisation.
Nationwide has defended the proposed increase, stating that it is essential to offer competitive compensation to attract and retain high-calibre leadership, especially in light of the growing scale of the business. The building society points out that UK rivals such as Lloyds and NatWest have recently increased executive pay following the removal of the banker bonus cap, positioning Nationwide in a more competitive landscape. However, the proposed bonus plan has sparked criticism from stakeholders, particularly from those who see the move as misaligned with society’s ethical branding and mutual ownership model.
The High Pay Centre, a think tank focused on income inequality and corporate governance, was quick to condemn the proposal. Its director, Luke Hildyard, argued that offering such an outsized bonus was “borderline hypocritical” for an organisation that prides itself on being a customer-first alternative to profit-driven commercial banks. Critics also pointed to previous marketing campaigns by Nationwide that took aim at big banks for prioritising executive profits over customer interests. The contrast between the society’s public messaging and its internal remuneration strategy has led to a perception of inconsistency.
In the previous financial year, Debbie Crosbie earned £2.5 million, while the staff bonus pool increased to £132 million, reflecting the inclusion of Virgin Money’s workforce. Despite these figures, the proposed bonus has raised concerns among customer-members, many of whom feel that such high executive pay is incompatible with the principles of mutual ownership. Nationwide has scheduled its annual general meeting for July 25, where customer-members will be given a vote on the new pay structure. The outcome will not only determine Crosbie’s compensation but also set a precedent for how mutual organisations balance leadership incentives with public expectations of fairness and integrity in the financial sector.
