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Co-operative Group hails year of further progress Co-operative Group boss asks for massive pay cut
(35 minutes later)
The Co-operative Group says it has made progress this year, with sales at both its food and funeral home businesses growing. The chief executive of the Co-operative Group has asked for a 60% pay cut because the job has become easier.
Chief executive Richard Pennycook says the business is now back "in calmer waters" and the reduction reflects the revised demands of the current job.
He told the BBC the pay cut was "by no means the main news", which was the Co-op's recovery, for which he credited his 70,000 staff's "dedication".
His base salary will fall from £1,250,000 to £750,000.
Mr Pennycook was finance director of the group, but took over as chief executive in 2014 when the former boss, Euan Sutherland, resigned after 10 months in the job.
His pay package was reported to be £3m.
Progress
In 2013, the Co-op was rocked by news that its bank had a £1.5bn hole in its capital. That was rescued by a group of investors and the Group retains a small stake in the bank.
The Co-operative Group, which comprises 2,800 food stores, 1,000 funeral homes and financial services, said it had made progress this year, with sales at both its food and funeral home businesses growing.
Profit was £23m for the year, down from £124m last year, when the figure was boosted by a one-off gain of £121m from selling parts of its business.Profit was £23m for the year, down from £124m last year, when the figure was boosted by a one-off gain of £121m from selling parts of its business.
Sales in its 2,800 food stores grew 1.6%, to give a £250m profit.Sales in its 2,800 food stores grew 1.6%, to give a £250m profit.
The business has the largest chain of funeral homes in the country. Profits there were £78m as sales rose by 9.9%. At its funeral homes, which is the largest chain in country, profits were £78m and sales rose by 9.9%.
Group underlying profit before tax was £81m, up from £73m last year.Group underlying profit before tax was £81m, up from £73m last year.
RecoveryRecovery
Chief executive Richard Pennycook is taking a pay cut of 60%. He says the business is now back "in calmer waters" and the reduction reflects the revised demands of the current job. The Co-op said its convenience stores were outperforming the UK grocery market, because people's shopping habits were changing as they made more frequent trips to buy food.
His base salary will fall from £1,250,000 to £750,000.
"I have to lead from the front," Mr Pennycock told the BBC. But he said his pay reduction was "by no means the main news, which is about the recovery through our businesses which is down to the dedication of 70,000 colleagues".
The business is seeing growth in both its food stores and funeral homes businesses.
It said its convenience stores were outperforming the UK grocery market, because people's shopping habits were changing as they made more frequent trips to buy food.
Earlier this week, grocery research firm Kantar reported that the Co-op's sales had risen at their fastest rate since it bought rival Somerfield in 2011, climbing by 3.9%.Earlier this week, grocery research firm Kantar reported that the Co-op's sales had risen at their fastest rate since it bought rival Somerfield in 2011, climbing by 3.9%.
It plans to open another 200 funeral homes in the next three years, which will increase the size of its estate to more than 1,100 homes.It plans to open another 200 funeral homes in the next three years, which will increase the size of its estate to more than 1,100 homes.