THE chairman of Darlington Building Society has called for an end to the row over the chief executive's pay deal.

William Baker Baker told last week's annual meeting that it was damaging the society's reputation and made his plea after Dr Ian Ross, a society member, again raised his concern about chief executive Peter Rowley's £157,000 salary, car and bonus package.

Last year Mr Rowley is reported to have received a total of £189,148, which included a £15,630 car allowance and £25,279 bonus.

Dr Ross believed Mr Rowley's pay package was excessive compared with other, similar building societies.

DBS has 95,000 members and 13 branches.

"Examining the accounts of the other peer group societies showed that Mr Rowley had the highest basic salary and the cost of employing him was almost £50,000 more than the average," he said. "That does not extend to staff salaries, where the average salary of employees was over £4,000 lower than the average among the society's peer group."

Dr Ross had raised similar concerns at the meeting last year and in a number of national newspapers since.

Mr Baker Baker told members: "What worries me about this campaign over the last year, which has been led by Dr Ross, is the risk it poses to Darlington Building Society.

"It is one of the greatest risks we face at the moment, the damage to our reputation."

He added that staff had a bonus scheme to reward their efforts, on top of their salaries, and that comparing standard staff salaries with societies in other parts of the country was unfair.

Dr Ross was a lone voice at last week's meeting, with other members jumping to Mr Rowley's defence.

Solicitor Robin Bloom said: "As members we are proud of this society and if we were not proud then we would vote with our feet."

Alistair Arkley, a member and chairman of the Tees Valley Partnership, said: "I am concerned that so much has been said about remuneration. This is becoming a fashionable subject to talk about at the moment. As far as I can see, Darlington Building Society is well led and the salary is deserved."

David Kelly, managing director of Newsquest North-East, publishers of the Darlington and Stockton Times, said: "I have followed with increasing frustration this media campaign mounted through two newspapers against Mr Rowley's remuneration package.

"I do not believe his salary is out of sync with other places because I would say his contribution to the society has been remarkable."

Others said they appreciated Mr Rowley had to be well-paid so that the society did not lose him to another company.

In a report to the meeting, Mr Rowley said 2003 had been one of the most successful years in the society's 147-year history, with branch-based business activity growing to record levels. Pre-tax profits of £3m were up 30pc on 2002.

Mr Rowley said he expected trading conditions in 2004 to be less favourable, owing to rapid house price inflation. In 2003, the DBS achieved record mortgage lending, 30pc higher than the year before.