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Co-op CEO quits over governance issues

Posted at March 11, 2014 | Categories : News

Euan Sutherland has resigned as group chief executive of The Co-operative Group, with immediate effect.

Commenting on his decision to leave, Mr Sutherland said: “I have given my all to the business and had hoped to be able to lead its revival.

“However, I now feel that 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.

“Saving The Co-operative Bank and with it The Co-operative Group from administration was a huge task, but the changes required do not stop there, with fundamental modernisation needed to safeguard the future for our 90,000 colleagues and millions of members.

“The Group must reduce its significant debt and drive major efficiencies and growth in all of its businesses, but to do so also urgently needs fundamental governance reform and a revitalised membership.”

Mr Sutherland will not be accepting the retention payments and long-term incentive payments previously agreed for the delivery and protection of value in the group and its bank, even though this was successfully delivered.