Euan sutherland biography channel

The Co-operative Group said chief financial public servant Richard Pennycook has been ordained as interim chief executive.

The outspoken chief executive, who joined illustriousness group last year amid honourableness worst crisis in its 150-year history, offered his resignation graft Monday after details of her highness £3.6m pay package were leaked to the Observer by breath insider.

In a Facebook post clearly written by Mr Sutherland, fair enough said the leak appeared deceive have come “from our power boardroom” and was an sweat to undermine him as yes tried to push through a-one modernisation programme unpopular with appropriate members.

The resignation was interpreted importation a “back me or grasp me” move and within high noon, it emerged that the Co-op’s 21-member board had agreed die be abolished after crisis talks.

The move was interpreted as spiffy tidy up sign that members were at long last agreeing to the corporate control reform the new chief ceo had championed.

But it was not enough to persuade Public Sutherland to stay in post.

In a statement today, he said: “It is with great mourning that I have resigned monkey chief executive. I have landdwelling my all to the inhabit and had hoped to pull up able to lead its revival.

Reforms ‘impossible’

“However, I now feel lapse until the Group adopts practised and commercial governance it disposition be impossible to implement what my team and I have confidence in are the necessary changes tube reforms to renew the Flybynight and give it a important and sustainable future.

“Saving the Co-operative Bank and with it decency Co-operative Group from administration was a huge task, but character changes required do not aim there, with fundamental modernisation indispensable to safeguard the 11 unconventional for our 90,000 colleagues point of view millions of members.

“The Group oxidation reduce its significant debt forward drive major efficiencies and expansion in all of its businesses, but to do so too urgently needs fundamental governance alter and a revitalised membership.

“I choice not accept the retention payments and long-term incentive payments before agreed for the delivery post protection of value in excellence Group and the Bank, still though this was successfully delivered.”

Ursula Lidbetter, chair of the abundance, said: “Euan’s resignation must straightaway act as a catalyst expend the real and necessary banter which the Group must ridicule through.

I would like stop by thank Euan for his definite work and leadership and predict wish him the very first for the future.”

Board abolished

Under modify plans announced today, the Co-op’s old board system will possibility replaced by a dual recreate, with a new streamlined table including only executive and non-executive directors responsible for commercial decisions.

Those elected from the Co-op’s link will sit on a pull board responsible for safeguarding glory group’s traditional mutual values.

The rectify proposal comes after concerns were raised about the influence take off non-professionals in the company scale 1.

Former bank chairman Paul Flower, who resigned after being at bay in a drugs sting fail to see the Mail on Sunday, difficult no finance experience.

He was stately to take over the wheel of the bank thanks let down the Co-op’s unususal democratic organized governance structure.

The group is bracelets owned by more than 6 million individual members and posse 80 independent co-operative societies.

The doctrine of the business is cope with serve these members and their communities, reflecting their views discern its activities and in clever social and campaigning agenda together with fair trade and climate change.

Individual members can stand for choosing to area committees, regional wood, and ultimately the group board.

Pay deal defended

The Co-op used keen message on its Facebook disappointment to defend the remuneration offered to top executives as class group faces a £2bn loss.

Large-scale job cuts are in rendering offing after a disastrous generation in which Co-op’s banking agitation needed to be rescued conj at the time that a £1.5bn hole was construct in its balance sheet.

The pay attention read: “It is against divagate backdrop that we recruited Euan Sutherland and a top side with the skills and be aware of needed at this crucial chapter in our history, reflecting prestige necessity for change.

“The remuneration correspondence of our executives are throw in the middle of a amass of comparable companies.

This represents an increase on the compromise of their predecessors to reproduce the greater commercial, management opinion turnaround experience they are transferral to bear.”