REPORT ON THE COSTS and BENEFITS OF A BUILDING SOCIETY CONVERTING TO A PLC

REPORT ON THE COSTS & BENEFITS OF A BUILDING SOCIETY CONVERTING TO A PLC Introduction At the beginning of this century there were more than 2000 building societies, fiercely independent mutual organisations, formed in the spirit of Victorian self help. There are now just 71. Some of these that have disappeared were terminating societies with a fixed wind up date. The last “terminating” society was the Fist Salisbury which wound up in 1980. Other societies have been swallowed up …

…will also usually have greater increases in pay. These people are not ‘FAT CATS’ they do a complex job and are paid the going market rate. In the long run senior managers of a plc are easier to remove from the company if their performance is poor. All in all the benefits of conversion outweigh the costs. This is true for all the interested parties, i.e. the building society, the members and the staff.