§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer whether he will issue regulations under the Building Societies Act 1986 to prevent building societies from becoming banks unless provision is made to ensure that directors and senior management do not increase their salaries and participation in share option schemes for five years thereafter.
§ Mr. NelsonNo. Under the terms of the Building Societies Act 1986, a conversion has to be approved by the members of a society, subject to stringent turnout and voting requirements. In the transfer statement put to the members, the board must disclose details of how the remuneration, including share options, of directors and senior management of the society will be affected by the conversion.