Building society losing sight of its principles

YOUR business section (Yorkshire Post, July 26) gives a platform for Yorkshire Building Society to boast of its “strong results”.

I object to a number of aspects of Yorkshire Building Society’s management as highlighted in your article.

Firstly, building societies are mutual organisations, supposedly run for the benefit of their members.

Having just checked the interest paid on my Internet Saver account, I discover (having been given no notice of changes) that it is now reduced to a derisory 1.4 per cent. Clearly, the investor members of the society are not a priority.

Secondly, I read that chief executive Chris Pilling’s’ salary in 2012 was £462,000, in addition to which he was awarded a bonus of £389,000, a total of £851,000. What on earth for? A building society is just about the simplest business model on the planet. You borrow money from investors at one rate and lend it, on the security of bricks and mortar, on mortgage at a higher rate.

No imagination, creativity or enterprise is needed, just some careful book-keeping. Nothing wrong with that, but it is not difficult.

Thirdly, why is Mr Pilling moving the higher value added aspects of the society, “marketing, product development and finance” to Leeds and away from its Bradford heartland? Why not in Bradford?

The last thing the city needs is one of its major institutions giving it another kick.

Does Mr Pilling plan to locate himself in Leeds which he perhaps sees as having a cooler image?

I invest in the mutual sector because I believe in its principles, and the disastrous outcome for every building society that became a bank is well documented.

However, I fear that the Yorkshire is losing sight of the principles which made West Yorkshire a powerhouse of mutual finance, so much of which has been destroyed by greed.