Unfair to those that had a Nationwide Account since 1985

Band7

wmb194 said:

xylophone said:

they consulted members over this distribution - 

Some members... here apparently.....

https://www.nationwide.co.uk/about-us/have-your-say/connect-community/

And even then......

• Take part in group online live chats – where we select a few members to chat with us in more detail.

It was not put to the vote which it seems to me it should have been.

What's funny but not actually funny is that normal companies with normal shareholder structures have votes at their AGMs to agree whether or not to pay a dividend.

Yeah but the shareholders rarely, if ever, are involved in defining how much the dividend is. It's also normally the Board of Directors who decide whether a dividend gets paid, not the shareholders.

Regardless of who approves the payment of dividends, they are paid based on how much capital a shareholder has invested on a given day. Not about luvvy duvvy "been a shareholder since xx/xx/xxxx".

wmb194

Band7 said:

wmb194 said:

xylophone said:

they consulted members over this distribution - 

Some members... here apparently.....

https://www.nationwide.co.uk/about-us/have-your-say/connect-community/

And even then......

• Take part in group online live chats – where we select a few members to chat with us in more detail.

It was not put to the vote which it seems to me it should have been.

What's funny but not actually funny is that normal companies with normal shareholder structures have votes at their AGMs to agree whether or not to pay a dividend.

Yeah but the shareholders rarely, if ever, are involved in defining how much the dividend is. It's also normally the Board of Directors who decide whether a dividend gets paid, not the shareholders.

Regardless of who approves the payment of dividends, they are paid based on how much capital a shareholder has invested on a given day. Not about luvvy duvvy "been a shareholder since xx/xx/xxxx".

Major shareholders are often involved behind the scenes - many will have board seats - and if the shareholders vote against the dividend proposal management will come up with another one.

Section62

wmb194 said:

Band7 said:

Major shareholders are often involved behind the scenes - many will have board seats - and if the shareholders vote against the dividend proposal management will come up with another one.

This^

If the "Fairer share" scheme was subject to ratification at the AGM I think it is fairly certain the management team would have had to come up with a better idea than one which makes just ~20% of the membership very happy.

Band7

wmb194 said:

Band7 said:

wmb194 said:

xylophone said:

they consulted members over this distribution - 

Some members... here apparently.....

https://www.nationwide.co.uk/about-us/have-your-say/connect-community/

And even then......

• Take part in group online live chats – where we select a few members to chat with us in more detail.

It was not put to the vote which it seems to me it should have been.

What's funny but not actually funny is that normal companies with normal shareholder structures have votes at their AGMs to agree whether or not to pay a dividend.

Yeah but the shareholders rarely, if ever, are involved in defining how much the dividend is. It's also normally the Board of Directors who decide whether a dividend gets paid, not the shareholders.

Regardless of who approves the payment of dividends, they are paid based on how much capital a shareholder has invested on a given day. Not about luvvy duvvy "been a shareholder since xx/xx/xxxx".

Major shareholders are often involved behind the scenes - many will have board seats - and if the shareholders vote against the dividend proposal management will come up with another one.

There is no legal requirement for shareholder approval of dividends. All that is required is Board approval.

Section62

Band7 said:

wmb194 said:

Band7 said:

Major shareholders are often involved behind the scenes - many will have board seats - and if the shareholders vote against the dividend proposal management will come up with another one.

There is no legal requirement for shareholder approval of dividends. All that is required is Board approval.

....and the Board as constituted at any given time is there only with the approval of the shareholders.

Worth bearing in mind that Nationwide's Memorandum and Rules make provision for a Special General Meeting to be called at the request of 500 members.... provided those members are willing to jump through all the hoops and also stump up a £50 deposit (each).  The members are then able to propose whatever resolutions they wish (within the constraints of the Memorandum and Rules).

I wouldn't like to bet against finding 500 members willing to risk £50, out of the ~12.9 million members who've been snubbed by the Board.  And in the era of crowdfunding it is a risky business to upset your owners.  All it will take is someone with time on their hands to be upset enough to start organising the disgruntled members.

wmb194

Band7 said:

wmb194 said:

Band7 said:

wmb194 said:

xylophone said:

they consulted members over this distribution - 

Some members... here apparently.....

https://www.nationwide.co.uk/about-us/have-your-say/connect-community/

And even then......

• Take part in group online live chats – where we select a few members to chat with us in more detail.

It was not put to the vote which it seems to me it should have been.

What's funny but not actually funny is that normal companies with normal shareholder structures have votes at their AGMs to agree whether or not to pay a dividend.

Yeah but the shareholders rarely, if ever, are involved in defining how much the dividend is. It's also normally the Board of Directors who decide whether a dividend gets paid, not the shareholders.

Regardless of who approves the payment of dividends, they are paid based on how much capital a shareholder has invested on a given day. Not about luvvy duvvy "been a shareholder since xx/xx/xxxx".

Major shareholders are often involved behind the scenes - many will have board seats - and if the shareholders vote against the dividend proposal management will come up with another one.

There is no legal requirement for shareholder approval of dividends. All that is required is Board approval.

That may be but this is how it generally works. I'm thinking about these things in the context of large, listed companies as this is the bracket Nationwide falls into. I notice you haven't nitpicked my point that there is shareholder influence.

At HSBC's recent AGM there was an activist shareholder proposal put to the vote that wanted to force the company to return its annual dividend payout to its pre-Covid level. It was voted down but at least we had the opportunity to give a view (I voted against). Nationwide and other BS' go on about how great it is that they don't have ordinary shareholder structures but I've really never seen evidence of it and this latest 'fairer' scheme is another negative example.

Alex9384

EarthBoy said:

They haven't moved any eligibility requirements.   The Fairer Share scheme is brand new, they've never run it before, so there were no eligibility requirements for it previously, Nationwide have created them from scratch.

They could have give advance notice of the requirements, e.g. they could have told everybody in January that by some date in March, or whenever, they would need a current account with £X paid into it regularly, and a savings account with £X in it etc., but if they'd done that they would have been swamped with people trying to game the system and opening new accounts just to get the free £100. 

This could be easily prevented by a clause requiring to hold the account for at least X amount of time, since it's a loyalty reward.

Section62

Alex9384 said:

EarthBoy said:

They haven't moved any eligibility requirements.   The Fairer Share scheme is brand new, they've never run it before, so there were no eligibility requirements for it previously, Nationwide have created them from scratch.

They could have give advance notice of the requirements, e.g. they could have told everybody in January that by some date in March, or whenever, they would need a current account with £X paid into it regularly, and a savings account with £X in it etc., but if they'd done that they would have been swamped with people trying to game the system and opening new accounts just to get the free £100. 

This could be easily prevented by a clause requiring to hold the account for at least X amount of time, since it's a loyalty reward.

Unfortunately it isn't a loyalty reward.

Nationwide have been clear it is a "deepest relationship" reward - a new customer in the first couple of months of 2023 could be eligible for the payout, and the only 'loyalty' they need to demonstrate is keeping a Nationwide current account open until the money lands there.

MACKEM99

I thought the Brighton man city game last night would be a draw.  I did not place a bet on it.  I have now lost out waaaaaahhhh!


😂

xylophone

 AFAIK the people "consulted" were specifically selected by Nationwide.

https://forums.moneysavingexpert.com/discussion/comment/80071073/#Comment_80071073

• Take part in group online live chats – where we select a few members to chat with us in more detail.
  
  

The called and the chosen......?:)