Sunny

Sunny

max temp: 14°C

min temp: 5°C

ESTD 1874 Search

Retail/Banking: Co-operative group boss Euan Sutherlands ‘offers resignation’

10:53 11 March 2014

Co-operative Group chief executive Euan Sutherland has reportedly tendered his resignation.

Co-operative Group chief executive Euan Sutherland has reportedly tendered his resignation.

Co-operative Group chief executive Euan Sutherland has reportedly offered to quit, saying the business is “ungovernable”.

shares

Co-operative Group chief executive Euan Sutherland has reportedly offered to quit, saying the business is “ungovernable”.

Mr Sutherland, who took over at the food-to-funerals company last May, is said to have written a resignation letter to the board in a “back-me-or-sack-me” move.

Members of the board are trying to persuade him to stay, according to the BBC.

The leaking of details about his bumper pay deal, which he felt was an attempt to destabilise him and prevent him pushing through reforms, was reported to be a factor in his decision last night.

A spokeswoman for the group could not immediately be contacted for confirmation of the report.

It emerged at the weekend that Mr Sutherland was to receive a deal worth £3.6million despite the Co-op facing a £2billion loss after the biggest crisis in its history.

The group is facing large-scale job cuts after a disastrous year in which its banking arm needed to be rescued when a £1.5bn hole was discovered in its balance sheet.

It is now facing an overhaul as well as a series of investigations into what went wrong, as well as continuing questions over the appointment of disgraced bank chairman Paul Flowers despite a lack of knowledge of the sector. Mr Flowers was later exposed in a newspaper drugs sting.

Labour and Co-operative Party MP Meg Hillier criticised Mr Sutherland’s actions, telling BBC Radio 4’s Today programme: “Obviously he has got a timetable and things have to be done, but he is jumping the gun and completely ignoring the mutual ethos of the Co-operative Group.”

She added: “Strong leadership in a mutual model doesn’t mean throwing a fit and throwing your toys out of the pram when something like your salary is leaked.

“This is a very big ... plc-style salary in a co-operative group. No doubt he believes he is worth that, but then he shouldn’t be so upset that it has been leaked. If he thinks he is worth it he should explain it or if he is embarrassed it has leaked he shouldn’t take it.”

shares

0 comments

Suffolk cider and vinegar maker Aspall was named Business of the Year at last year's EADT Business Awards.  From left, Tom McGarry of EDF Energy, Barry Chevallier Guild of Aspall and Sarah Howard,  of SuffolkChamber.  	
Picture: Lucy Taylor

Tomorrow is the final day for entering the 2015 East Anglian Daily Times Business Awards.

The Bernard Matthews processing plant at Great Witchingham.

Poultry company Bernard Matthews has revealed signs of recovery by posting a significantly reduced annual loss.

The price war between the UK's supermarkets is causing problems for their suppliers and for smaller food retailers, according to a new report.
Photo: Getty Images/Pixland

The supermarket price war is having a “devastating” effect on suppliers and smaller grocers after a report showed the number of food and drink manufacturers in “significant” financial distress jumped by 94% on a year ago.

Frank Brumby, eastern region chairman of R3.

A new website designed to guide the region’s creditors through the insolvency process has been launched by the eastern branch of insolvency trade body R3.

Alex Till of Menta.

Enterprise agency Menta has launched a new Digital Enterprise Engagement Programme (DEEP), offering newly formed local businesses and those who are self-employed access to free digital training courses.

Solar farm. Library image.

A proposed solar park in Wix has been tipped for approval by council planning officers.

The headquarters of Realise Futures in Ipswich.

Ipswich-based social enterprise Realise Futures has won a contract to provide supported employment services for adults with disabilities across a wide area of Essex.

Stage 5 of the Womens Tour passes through Onehouse on their way to Bury St Edmunds last year

Schoolchildren will also be involved in an evening of activities in Bury St Edmunds ahead of the start of a major women’s cycling event.

Cloud telecoms company X-on has launched Cuube, a new online communications services platform.

Cloud telecoms company X-on, based at the Framlingham Technology Centre, has launched Cuube, a new online communications services platform.

Most read

Most commented

Topic pages