Nationwide could have first customer on board for nearly 25 years | Nationwide

The nationwide construction industry has been able to welcome a customer to its board of directors for the first time in almost a quarter of a century after one of its long-standing members provided enough support to take part in the lender’s annual ballot.

James Sherwin-Smith will stand for board elections at Nationwide’s annual general meeting (AGM) in July, fielding more than 250 candidates required to serve alongside existing directors.

If successful, the 45-year-old, from West Sussex, will become the first client known as a national member to sit on the building society’s board for 24 years, the last of which retired in 2002.

The last time a member-nominated client came to the AGM vote was in 2005, but they did not receive enough votes to be elected to the board.

Members of the board of directors of a building society are usually appointed by the existing directors.

Nationwide, which was founded in 1884 as the Southern Co-operative permanent building society in south London, has not yet made a decision on whether to recommend Sherwin-Smith’s election to other members before the annual meeting.

Otherwise, this could significantly hinder Sherwin-Smith’s chances for a board seat, given that he would not be included in the list of automatic “speed-ballot” options that reflect board recommendations and are preferred by most members.

Sherwin-Smith is one of a handful of members who say the construction industry’s rapid growth is jeopardizing its democratic roots and leaving members with far less say in its operations.

These concerns included Nationwide’s decision not to hold a member vote on its £2.9bn acquisition of Virgin Money in 2024; The target’s shareholders had a say.

The construction company also came under fire last summer for refusing to give members a binding vote on a 43 per cent pay increase for chief executive Debbie Crosbie, who increased her pay package to £7 million.

Sherwin-Smith failed to appear on the ballot last year despite collecting 600 signatures, prompting criticism of the complex hurdles members must overcome to nominate or place resolutions on Nationwide’s ballot.

Sherwin-Smith said: “At a time when Nationwide is integrating Virgin Money, I think this raises a wider question about member representation, cross-governance and how contested board elections should work in practice.

“With a seat on the ballot now secured, my focus is to ensure members have a clear and fair opportunity to make an informed decision about who represents them on the board.”

Nationwide, which has 17 million members and assets of more than £377bn, has previously said it regularly engages a panel of 6,500 members, surveys 500,000 members each year and votes for them in director elections.

He did not confirm when he would decide whether to support Sherwin-Smith, but a decision could be made in the next few weeks. It is understood this will put him through an internal review process before the General Assembly finalizes its recommendations, which will determine the “fast vote” options.

Sherwin-Smith serves as an advisor and investor in financial technology companies but said he would consider giving up those roles to qualify for a board position.

A nationwide spokesman said: “We have received an application from James Sherwin-Smith, which has been checked against the association’s published rules. Mr Sherwin-Smith received 256 valid nominations, exceeding the threshold set out in the rules. He will therefore be put to the vote at the association’s AGM.”

The general assembly will be held on July 15.