Nationwide defends £1.1m payout

NATIONWIDE Building Society, the mutual that claims to share its profits with savers and borrowers, paid its former boss Brian Davis almost £1.1m last year. Davis' package included an annual bonus of £283,000 and a three-year bonus of £440,000.

A spokesman for Nationwide said Davis, who retired in December, deserved the package because he had improved satisfaction for customers and made the society more efficient.

Nationwide's profits fell £465.7m to £325.7m in the latest year. It returned £520m of 'excess profits' to members through better savings and borrowing rates, up from £402m the previous year.

But the society also shocked its members by revealing that it had lost £40m on corporate bonds, including loans to stricken telecoms equipment maker Marconi.