industry

Nationwide boss receives £185k expenses on top of huge salary as profits fall 15 PERCENT


The chief executive of Britain’s largest building society took home the equivalent of almost £507 for every day of a 12-month period. His benefits from this sum, of which the total amount during the 12 months to April 4 came to £185,000, covered the cost of travel, security and medical expenses. And this eye-watering amount, as reported in The Times, was in addition his £885,000 salary, £292,000 pension allowance and £1million bonus. This took his total money paid for work or service for this period to £2.37million, up from £2.32million a year earlier.

It comes as Nationwide profits fell during the same timeframe, with the building society reporting a 15 percent drop in pre-tax earnings.

The lender recorded pre-tax profits of £833million, down from £977million the previous year.

Nationwide blamed intense competition in the home lending market and increased spending on digital banking services.

The bank said in an announcement last September it would spend an additional £1.3billion on technology.

Nationwide saw net interest margin fall to 1.22 percent, down from 1.31 percent the previous year.

Speaking at the time of the profit release, Mr Garner, 49, said the British economy had slowed but was proving robust.

He added: “[The economy] has proved more resilient than many expected, with continued healthy gains in employment and a gradual rise in earnings contributing to solid rates of household spending.”

A spokesman for Nationwide said: “Guided by our values as a building society, we pay our senior executives, including our CEO, below the market average.

“Our CEO’s maximum pay is typically around half the FTSE 100 CEO average.”

Nationwide said it would continue to invest in its branches as well as its technology offering, with the latest investment expected to increase efficiencies.

Last month saw the chief financial officer for Nationwide inform the board of his intention to retire.

Mark Rennison agreed to stay in the role until a successor has been appointed, Nationwide said.



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