Euan Sutherland resigns from 'ungovernable' Co-op Group
Chief executive Euan Sutherland has stepped down, blaming a lack of ‘professional and commercial governance.
EUAN SUTHERLAND has resigned as chief executive of the Co-operative Group, describing the mutual group as "ungovernable".
Richard Pennycook, the Co-op's chief financial officer, will step into the role on an interim basis.
In a statement posted on the Co-op Group's Facebook page, Sutherland said: "Until the Group adopts professional and commercial governance it will be impossible to implement what my team and I believe are the necessary changes and reforms to renew the Group and give it a relevant and sustainable future."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The Times reports that the Co-op's board was reluctant to accept the resignation.
"In a failed effort to salvage the situation and persuade Mr Sutherland to stay, the board agreed to call a vote of the Co-op's entire membership on plans for a radical overhaul," the paper reports.
According to commentators quoted by the BBC, Sutherland's departure stems from a clash of cultures between the mutual traditions of the Co-op, which is owned by its customers, and the more cut-throat approach of its modern business rivals.
"Mr Sutherland's resignation offer may have come about due to disagreements at board level on the direction the Co-operative Group should be taking," John Thanassoulis, professor of financial economics at Warwick Business School, told the BBC.
"This is a comment on how viable the Co-operative Group's business model is – can it survive or does it not work?"
Sutherland was criticised after details of a proposed remuneration package of £3.66m were leaked over the weekend.
"Liberal Democrat and Labour politicians denounced the pay as not being in line with the Co-ops's ethical principles," the Times reported.
The resignation comes after a year of financial problems in Co-op's banking division and the arrest of the division's former chairman Paul Flowers for alleged drug offences.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - November 23, 2024
Cartoons Saturday's cartoons - qualifications, tax cuts, and more
By The Week US Published
-
Long summer days in Iceland's highlands
The Week Recommends While many parts of this volcanic island are barren, there is a 'desolate beauty' to be found in every corner
By The Week UK Published
-
The Democrats: time for wholesale reform?
Talking Point In the 'wreckage' of the election, the party must decide how to rebuild
By The Week UK Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published
-
Out of fashion: Asos ‘curse’ has struck again
Speed Read Share price tumbles following the departure of CEO Nick Beighton
By The Week Staff Published
-
Universal Music’s blockbuster listing: don’t stop me now…
Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
By The Week Staff Published
-
EasyJet/Wizz: battle for air supremacy
Speed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
By The Week Staff Published