The pay packet of Graham Beale, CEO of Nationwide, for 2011 after bonuses is currently a substantial £1.88m.
I am upset to learn that Nationwide have decided to increase his basic pay by 25% for next year.
I chose to open my account with Nationwide because they are different. Nationwide is a building society and not a bank.
Nationwide has no shareholders and is supposed to put their members first, it's terrible to see them behaving as a bank - increasing top pay for executives while they know that members and staff are struggling with increasing food and energy prices.
Last week, the High Pay Commission published 12 recommendations for curbing 'corrosive' executive pay. More information is available on the commission's website and in this FT editorial.
As an ethical business that says it puts members first, Nationwide should implement all of these measures.
The 12 measures are:
1. Pay basic salaries to company executive
2. Publish the top ten executive pay packages outside the boardroom
3. Standardise remuneration report
4. Require fund managers and investors to disclose how they vote on remuneration
5. Include employee representation on remuneration committees
6. All publicly listed companies should publish a distribution statement
7. Shareholders should cast forward-looking advisory votes on remuneration reports
8. Improve investment in the talent pipeline
9. Advertise non-executive positions publicly
10. Reduce conflicts of interest of remuneration consultants
11. All publicly listed companies should produce fair pay report
12. Establish a permanent body to monitor high pay
Nationwide should commit to implementing all these measures and show their commitment to fair executive pay.