For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails
Sign up to our free breaking news emails
The boss of the Co-operative Group has asked for his pay packet to be cut by 60 per cent having seen the first signs of success with his turnaround of the food-to-funerals conglomerate.
Richard Pennycook’s base salary will be cut to £750,000 from £1.25 million, while his incentives will be brought in line with other senior managers’.
The mutually owned firm’s chairman Allan Leighton said that reflected the Co-op’s shift from “rescue” to “rebuild”.
“We are in a different phase and [his pay] should reflect that he is the CEO of a co-operative movement as opposed to a CEO of a larger company.”
Leighton rejected the suggestion Pennycook was originally paid too much, adding: “Remember [The Co-op] was long gone and dead not long ago and the fact that you can see today that all facets of the organisation and business are growing… is a reflection of the work that’s been done.”
The Co-op was rocked by an overstretched balance sheet and faced near-collapse at its bank in 2013, which was later hit by a drugs scandal in involving the bank’s then-chairman, Paul Flowers.
The 20 best-loved British brands in 2016
Show all 20
Now two years into a £1.3 billion revival plan, it reported flat revenues for 2015 of £9.3 billion and underlying profit up 11 per cent at £81 million.
Like-for-like sales at its food business were up 1.6 per cent as it reaped the benefits of a move towards more convenience shopping. Funeral sales rose almost 10 per cent.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies