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| Co-operative Group boss asks for massive pay cut | Co-operative Group boss asks for massive pay cut |
| (about 1 hour later) | |
| The chief executive of the Co-operative Group has asked for a 40% 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. | 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". | 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. | 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. | 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. | His pay package was reported to be £3m. |
| Progress | 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. | 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. | 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. |
| At its funeral homes, which is the largest chain in country, profits were £78m and 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. |
| Recovery | Recovery |
| 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. | 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. |
| 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. |