Is Carpetbagging Dead

bowlhead99

Newnoel said:

roddydogs said:

Nationwide put it to a vote, but the majority voted to stay a mutual so now youve got all the disadvantages of a bank, without the payout!

The only ones getting a payout from the Nationwide were, and still are, the directors.
From the 2019 remunerartion report, the top directors earned between £1.3m and £2.4m each:
Report of the directors on remuneration 2019 | Nationwide
It is yet another so-called mutual run for the benefit of its directors, rather than the account holders

Nationwide have a little over £200bn of mortgages and loans to customers and £160bn of member deposits.  So if the top executive director had worked for free and not taken his salary, benefits and bonus, we could have each had an extra £0.0000066 of savings interest or saved borrowing interest for every pound we saved or borrowed.

For those saving £10k or borrowing £10k for a car, less than seven pence of difference to the interest. More of a difference to mortgage borrowers, who would have had 66p less mortgage interest to pay on every £100k borrowed. 

When you add all those 7p and 66p amounts, it's not chump change, so a lot is made of chief exec pay and what the 'fair market rate' should be for someone being recruited into a top job on a plc bank or building society board. In practice, if you gave the top job to someone on a minimum wage apprenticeship, the financial institution's balance sheet might get worse rather than better. The customers might not like knowing that they are paying 6p to the CEO out of the interest rate on their £10k borrowing or savings, so will no doubt go to a different financial institution if they don't like the rates on offer. 

But in reality, most customers will make their 'stay or go' decision on what the rates are and what the customer service is like, rather than what the big boss gets paid - and so the rates and customer service levels are driven by the competitive environment, meaning that those rates and service levels wouldn't be expected to change significantly if the boss got paid a bit less less.  

If the boss on a £2.4 million package (including a £1m performance-related bonus) voluntarily gave up a third of that bonus, and they shared that saved money between all the savers and borrowers, the share for a £10k borrower or saver would not be as much as a penny. Maybe it would be good marketing for them to say the boss took a pay cut to help out the borrowers and savers - but people who want to moan about executive pay would still say he's getting too much (because it's more than they earn in their own jobs which they believe to be just as difficult; and the people with £10k of savings or car loans or credit card balances would moan that although his pay was ostensibly cut to give them a 'better deal', actually their share was under 1p each so their monthly statement was entirely unchanged and it didn't make a blind bit of difference to their lives.

Sailtheworld

gandb said:

I've £100 sat in several Mutual Building Societies.   Have the rules changed?   The derisory % is irrelevant.  Is Carpet-bagging Dead?
My list includes:  Any suggestions please?

Britannia

Chelsea

Coventry

Nationwide

Newbury

Newcastle

Norwich & Pet

Stroud & Swindon

West Bromwich

Carpetbagging was dead (and I thought forgotten) years ago.

All you've got now is a bit of a pain for your beneficiaries to sort out.

bowlhead99

Sailtheworld said:

gandb said:

I've £100 sat in several Mutual Building Societies.   Have the rules changed?   The derisory % is irrelevant.  Is Carpet-bagging Dead?
My list includes:  Any suggestions please?

Britannia

Chelsea

Coventry

Nationwide

Newbury

Newcastle

Norwich & Pet

Stroud & Swindon

West Bromwich

Carpetbagging was dead (and I thought forgotten) years ago.

Much like the thread

Thrugelmir

Newnoel said:

roddydogs said:

Nationwide put it to a vote, but the majority voted to stay a mutual so now youve got all the disadvantages of a bank, without the payout!

The only ones getting a payout from the Nationwide were, and still are, the directors.
From the 2019 remunerartion report, the top directors earned between £1.3m and £2.4m each:
Report of the directors on remuneration 2019 | Nationwide
It is yet another so-called mutual run for the benefit of its directors, rather than the account holders

Like any other member you can voice your displeasure by voting at the Annual General Meeting. Be more noticiable than a post on an old internet forum thread. That's past it's sell by date. 

eskbanker

Thrugelmir said:

Newnoel said:

roddydogs said:

Nationwide put it to a vote, but the majority voted to stay a mutual so now youve got all the disadvantages of a bank, without the payout!

The only ones getting a payout from the Nationwide were, and still are, the directors.
From the 2019 remunerartion report, the top directors earned between £1.3m and £2.4m each:
Report of the directors on remuneration 2019 | Nationwide
It is yet another so-called mutual run for the benefit of its directors, rather than the account holders

Like any other member you can voice your displeasure by voting at the Annual General Meeting. Be more noticiable than a post on an old internet forum thread. That's past it's sell by date. 

Likely to be more noticeable to Nationwide but realistically unlikely to be any more effective!  As covered in previous threads with posters bleating about Nationwide director remuneration, the 90+% margins by which AGM resolutions are passed make it highly improbable that individual (or even collective) disgruntled members would have any meaningful impact, although your fundamental point is obviously correct that the AGM is the mechanism to do something more constructive than sounding off on a forum....

castle96

With NW I always vote against EVERYTHING

eskbanker

castle96 said:

With NW I always vote against EVERYTHING

Which is of course your prerogative as a member, but how often has it achieved the desired effect?

castle96

never but I vent my feelings!

planteria

to answer the original question, i'd say it's very slow, but very much alive..
some of us 'baggers from the old days will be bagging a cash payment as a result of our membership of LV this year, along with an uplift to our WP policy maturity values [https://forums.moneysavingexpert.com/discussion/6158325/liverpool-victoria-sale-demutualisation/p1]. 
fwiw saving £100s from my first job to open building society accounts, having seen my cousins all receive payments to compensate them for the loss of their Halifax membership, was how i started saving, and when i wound up with Bradford & Bingley and Standard Life shares i became 'an investor' and have had a healthy interest in saving/investing/personal finance ever since.

jimpwarsop

Prompted by this thread I find we have accounts with Saffron, and Staffordshire Railway.

Worth keeping ?