Nationwide's chief executive, Dame Debbie Crosbie, has seen her remuneration package almost double, largely due to bonus awards following the building society's multi-billion pound acquisition of Virgin Money.
According to the mutual's latest annual report, Dame Debbie received a total of £4.67 million for the financial year ending March 31.
This sum comprised a fixed salary of £1.2 million and bonuses amounting to £3.2 million, supplemented by a pension allowance and other benefits.
This figure represents a substantial increase from the previous year's pay packet of £2.49 million.
Nationwide attributed the rise to the chief executive exercising a long-term bonus award, initially granted in 2023, which is linked to the building society's three-year financial performance.
The company’s pay committee said it was “comfortable that remuneration outcomes reflect the society’s excellent performance”.
Kevin Parry, chairman of Nationwide, said: “Debbie Crosbie’s pay has increased because it includes a long-term bonus for the first time, reflecting the society’s outstanding performance and development over the last three years.
“In that period, Nationwide has paid out more to members than at any time in its history, our customer satisfaction lead has doubled, and we now have the largest branch network in the country.
“Because of this, we have been able to quadruple member value and attract, retain and motivate talented people to work at Nationwide.”
Nationwide made a pre-tax profit of £1.49 billion for the year to the end of March, which was down from the £2.3 billion reported the previous year.
The prior year’s earnings had been boosted by a one-off gain from the acquisition of Virgin Money, which it is currently integrating into the group.
Dame Debbie spearheaded the £2.9 billion 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 £1.5 billion 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.
