Quick Vote criticized at the Nationwide

As James Sherwin-Smith tries to get elected to the board of the building society, the use of the Quick Vote comes under fire in the Guardian:

‘Nationwide has yet to answer some questions about the election process. It said Sherwin-Smith would need a simple majority of more than 50% to be elected, like other directors. However, the society did not confirm whether he would need to get more votes than, and unseat, an existing board member. It also said the remuneration committee had yet to decide whether Sherwin-Smith might be paid.

The board is also deciding whether to officially recommend Sherwin-Smith’s election to members. A refusal to do so would significantly hinder his chances, given the board gives members a “quick vote” option that backs all board recommendations with one click.

Monica Franco-Santos, a senior academic specialising in corporate governance at the Cranfield School of Management, said this could be used to sway member votes. “A one-click endorsement of the board’s preferences is likely to make ratification the default, and that is a powerful control mechanism,” she said.

Nationwide said that it had used the quick vote model for more than 20 years and that the vast majority of members said they “understand the choice that it gives them and they value the convenience it provides”.’