McCormick to get £300k settlement

CHESHIRE Building Society chief executive Karen McCormick will receive a payment close to £298,000 when she leaves following the merger with Nationwide.

A Merger Notification Statement was issued to members this week, which included details of the settlement.

Under the terms of her contract, Mrs McCormick will take home a full year’s pay.

The payout includes redundancy pay of around £55,500, 12 months’ pay and up to a further three months’ salary. However, she will receive no performance bonus.

Cheshire members, disgruntled that they will see no financial benefit from the merger, are becoming increasingly vocal on financial advice websites and blogs.

In response to the growing discontent a spokesperson said:  “The most important issue is that the board of the Cheshire unanimously believes that a merger with Nationwide is in the best interests of our members at a time when unprecedented market conditions and a weakening economy have created much uncertainty. 

“The Cheshire name, branch network, call centre and internet facilities will remain and the Cheshire will still be owned and run for the benefit of its members who will benefit from the security and stability of the UK’s largest building society.”

The merger is expected to complete on December 15, after which Mrs McCormick will continue to work as a divisional director, and stay on in a non-board position.

The report also said the societies anticipate that there will be reductions in staff numbers as a result of the merger, and benefits from workers’ pensions may also be subject to change.