Co-op boards set for collision course over plans to boost its execs’ salaries
The Co-op Group is facing a new onslaught of internal crises – this time over the proposed rise in its executives pay, which has been challenged by its regional boards.
According to The Guardian, the protests made by the regional boards against the salary increases of the board executives are to be addressed in the annual general meeting – the agenda of which was leaked to the Observer.
Tensions are running high after the news last week that Rev Paul Flowers, former chairman of the group's bank, which racked up losses of £1.9bn, admitted he was guilty of drug possession. The debt has led to the group having to look at making a serious aount of redundancies.
The news follows a tumultuous few months for the group, which saw the resignation of former CEO Euan Sutherland, who accused it of being “ungovernable” in its current situation.
His comments came just days after leaked documents revealed the group was preparing to offer him a pay packet of £3.6m – he then took to Facebook to criticise the group.
He was later replaced with interim CEO Richard Pennycook.
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