Nationwide boss sees pay packet nearly double after Virgin Money takeover

Dame Debbie Crosbie spearheaded the mutual’s multi-billion pound acquisition of Virgin Money

The boss of Nationwide has seen her pay packet nearly double as she cashed in on bonus awards after steering the building society’s multi-billion pound acquisition of Virgin Money.

Chief executive Dame Debbie Crosbie took home a total package of £4.67m for the latest financial year to March 31, according to the Swindon-headquartered mutual’s annual report.

This consisted of a fixed salary of £1.2m and bonuses totalling £3.2m, alongside a pension allowance and benefits. This marks a near doubling of the boss’s pay packet for the previous year, which was worth £2.49m.

Nationwide said the increase was due to the chief executive cashing in on a long-term bonus award which was first granted in 2023, and tied to the three-year, financial performance of the building society.

The company’s pay committee said it was “comfortable that remuneration outcomes reflect the society’s excellent performance”.

Nationwide made a pre-tax profit of £1.49bn for the year to the end of March, which was down from the £2.3bn reported the previous year.

The prior year’s earnings had been boosted by a one-off gain from the acquisition of Newcastle-based Virgin Money, which it is currently integrating into the group.

Dame Debbie spearheaded the £2.9bn takeover which was the biggest merger in the UK banking industry since the financial crisis, bringing together Britain’s fifth and sixth largest retail lenders.

The Virgin Money brand is set to be phased out and its customers will be able to transition to Nationwide, while the first rebranding of branches is expected to come in 2028.

Meanwhile, Nationwide will have handed out about £1.5bn to members since 2023 as part of its profit-sharing initiative, after some 4.4 million eligible members get the next £100 payment this month.

But the building society is facing criticism over its handling of the first member-nominated candidate to stand for election to sit on its board.

James Sherwin-Smith is the first customer of the building society to run for a seat in 24 years.

But the current board of Nationwide is recommending that members vote against his election, arguing that he does not have the necessary skills or experience to fulfil the role, and utilising a so-called “quick vote” option through which members can go along with the board’s recommendations in a single action.

A statement from Nationwide’s board said it was “not satisfied that he would contribute constructively and effectively to the board in line with its duty to act in the best interests” of members.

Mr Sherwin-Smith, who says he has spent more than 20 years working in financial services, said: “This election is about much more than one seat on the board.

“It is about whether the owners of Nationwide – its members – have a meaningful voice in the governance of their society.”

He added: “The board argues that I lack the experience necessary to contribute effectively. Members can judge that for themselves.”

Advanced voting opened on Monday ahead of Nationwide’s annual general meeting on July 15.