Nationwide is committed to best practice in corporate governance and complies with the BSA Guidance for Building Societies on the UK Corporate Governance Code issued by the Financial Reporting Council. In accordance with the requirements of the UK Corporate Governance Code, which came into effect for accounting periods commencing on or after 29 June 2010, information regarding the Board and its Committees is provided below.
The Board focuses on formulation of strategy, control and review of business performance. There is a framework of authorities in place which maps out the structure of high level delegation below Board level and specifies those issues which remain the responsibility of the Board.
The Board has delegated authority to four principal Board committees, the Audit, Remuneration, Nomination and Board Risk Committees.
The Audit Committee is responsible, on behalf of the Board, for reviewing the adequacy of the strategies and policies for risk management and control set by the Board. The system of internal control is designed to enable Nationwide to achieve its corporate objectives within a managed risk profile.
The Remuneration Committee determines and agrees, with the Board, the framework for the remuneration of Nationwide's Chief Executive, Chairman, the Executive Directors, the Secretary and the Divisional Directors. The objective of this policy is to ensure that Executive and Divisional Directors are provided with appropriate incentives to encourage enhanced performance, in a fair and responsible manner.
The Nomination Committee is responsible for reviewing the structure, size and composition (including the skills, knowledge and experience) of the Board, compared to its current position, and to make recommendations to the Board with regard to any changes. This includes new appointments and considering the re-election of Directors when appropriate.
Board Risk Committee
The Board Risk Committee is responsible for establishing and recommending to the Board the risk strategies, frameworks and policies of Nationwide and for regularly reviewing and reporting to the board on the appropriateness and effectiveness of such matters. The objective of the risk strategies, frameworks and policies is to manage Nationwide’s risk appetite.
Board Committees Membership
The membership of the principal Board Committees is as follows: