Why it’s best to be in the room

I’M a member of Coventry Building Society and have long wanted to attend its AGM. But although I love a day out, I’ve never managed to make time to spend a day midweek travelling to and from Coventry’s Ricoh Arena where the event is normally held, writes Rachel Rickard Straus.

This year, though, the AGM was online so I could attend from home. Much more convenient – although I missed out on the light refreshments that are normally offered at in-person events.

But it was when members were given an opportunity to ask questions that I realised why attending in person is still essential.

I planned to ask a question about the massive pay cheque handed over to chief executive Steve Hughes last year. As The Mail on Sunday r eported l ast month, Hughes earned £702,000 for just over eight months’ work, including a six-figure bonus.

We wanted to know how he and the remuneration committee felt this was appropriate at a time when the pandemic has caused economic hardship for many members – and many more f ace rock- bottom income from their deposits with the society.

Were I there in person, I could have raised my hand to ask a question – and waved it animatedly if I thought I was being ignored.

But instead I had to submit my question online and just wait to see if it was answered. It wasn’t. In person, the executive team and board have to think on their feet when asked a question. The spontaneity is likely to lead to a less polished, more honest response. Online, they have time to craft an answer. In person, I could also have watched the body language of the team when they were asked difficult questions about low interest rates. But online, it is harder to gauge.

The end result was a more sanitised, controlled AGM in which the board and executives held all the power.

I think it is imperative, therefore, that shareholders (members in the case of building societies) are always given an opportunity to attend an AGM.

I’ll be off to Coventry next year.