Figures from the mutual’s annual report show the society’s five executive directors, including CEO Beale and executive director group distribution, Matthew Wyles, all received total packages of over £1m for the 2011-12 financial year.
The other executives include chief operating officer, Tony Prestedge, Mark Rennison, executive director group finance and risk and Chris Rhodes, executive director group product and marketing.
The annual bonus scheme has two elements – performance against the corporate plan and individual performance – also running alongside a Medium Term Bonus Scheme rewarding goals over a three year period.
The director’s annual bonus scheme offers target-related pay of up to 54% of annual pay and the three-year scheme offers up to 81%.
As a mutual, Nationwide also allocated bonuses in cash, in contrast to the deferred share bonuses received by many top UK bankers since the credit crunch, however, a portion of that cash is deferred to allow for clawbacks.
Nationwide’s chairman Geoffrey Howe, had a salary boost to £300,000 for 2011/12 but he confirmed in his statement the mutual may have to change its cash bonus payments to shares to comply with the FSA’s Remuneration Code.
Nationwide said as the biggest mutual and a tier one lender it is in a unique position as a “building society that operates in a banking world.”
A spokesman said the mutual recruits senior management with enough experience and the calibre to satisfy the FSA, which means those recruits are naturally from the banking and insurance world.
“We’ve had a very settled management team in the last five years and as one in four people in the UK have bank accounts with us, we need to be in the corporate position to take responsibility for their money,” said a spokesman.
Over 2,500 financial services firms are likely to be affected by changes to the Remuneration Code which came into effect on 1st January 2011 and requires firms to marry risk management with remuneration.
