MortgagesAug 2 2017

Monmouthshire CEO steps down after 7 months

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Monmouthshire CEO steps down after 7 months

The chief executive of Monmouthshire Building Society James Bawa has stepped down after just seven months in the role, FTAdviser can reveal.

A spokesperson for the Newport-based mutual confirmed Mr Bawa had taken “an extended leave of absence from the board of directors”.

Monmouthshire’s finance director, William Carroll, has been made acting chief executive as an interim measure.

The Financial Conduct Authority's Financial Services Register showed Mr Bawa left his controlled function of chief executive at Monmouthshire on 22 June.

Mr Bawa was appointed chief executive of the society in November 2016 after previously serving as CEO of Teachers Building Society from 2002.

He recently donated his entire annual bonus – understood to be thousands of pounds - to homeless charity the Wallich and an overseas education charity.

In 2016, Monmouthshire was one of four building societies with net assets of more than £1bn, alongside Nationwide, Yorkshire and Principality.

A strong set of financial results saw the mutual achieve a record post tax profit of £6.4m and gross mortgage lending of £139m.

News of Mr Bawa’s departure follows a significant rise in the turnover rate of chief executives at the larger mutuals in 2016.

According to consultants Norman Broadbent, the CEO turnover across the larger mutuals in 2016 – 26.7 per cent – was appreciably higher than the turnover rates in preceding years – 20 per cent, 13.3 per cent and 0 per cent in 2015, 2014 and 2013 respectively.