Nationwide boss retires

NATIONWIDE chief executive Brian Davis unexpectedly announced his retirement today, four months after his controversial decision that the building society should stop offering discounted mortgage deals.

Davis, 56, will leave at the end of December after seven years in the job.

He will be replaced by retail operations director Philip Williamson, 53.

Earlier this year, Davis said Nationwide would no longer subsidise the cut-price mortgages offered to new customers by penalising loyal borrowers with expensive deals.

Instead, the society chose to offer the same rates to all. The decision has been widely criticised and has seen Nationwide lose out heavily in referrals from independent financial advisers.

Today, however, a spokesman said: "Brian's decision has nothing to do with mortgage rates. Broker-introduced business has fallen away but mortgages in the branches and remortgages have increased.

Davis has retained Nationwide's mutual status despite repeated calls from some members to convert to a bank. Williamson is also a committed mutualist.

"There will be no fundamental change in our strategic direction from me," he said today.

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