Financial News

  • 10 March 2014, 21:43

Co-op Set To Hand Senior Staff Large Pay Boost

The Co-operative Group is set to hand senior staff large pay rises and bonuses, as the troubled mutual prepares to announce losses for 2013 which are expected to be its worst ever.

Chief executive Euan Sutherland is set to receive a salary of more than 3.6m, it has been claimed.

He said last month the mutual had "lost touch" with customers and launched an online poll so people could make suggestions about its future direction.

It comes amid plans to sell parts of its business that have left question marks over thousands of jobs.

The Co-op runs supermarkets, pharmacies and funeral services. It is owned by its eight million members.

The Observer has seen documents that say the pay packages are necessary because "the (Co-op's) executive agenda is possibly the most complex one facing a large business in the country today", a reference to the recent troubles at the bank.

Mr Sutherland will be given a base salary of 1.5m this year, with a 1.5m retention payment, the paper claims.

It says that when pension contributions and extras are included, this rises to 3.66m.

Mr Sutherland's predecessor, Peter Marks, received around 1.3m last year.

Chief operating officer Richard Pennycook will receive a salary of 900,000 and a retention payment of the same amount.

Six other executives will be paid salaries of between 500,000 and 650,000, with the same amount in retention.

Ursula Lidbetter, chair of the Co-operative Group, said: "The remuneration packages of our executives are in the middle of a range of comparable companies.

"This represents an increase on the pay of their predecessors to reflect the greater commercial, management and turnaround experience they are bringing to bear.

"Euan and his team have already made a significant contribution to the group and we are confident that they will continue to do so."

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