This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.independent.co.uk/news/business/news/euan-sutherland-resignation-coop-chief-executive-offers-to-quit-ungovernable-mutual-group-9183368.html

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
Euan Sutherland resignation: Co-op chief executive offers to quit 'ungovernable' mutual group Euan Sutherland resignation: Co-op chief executive offers to quit 'ungovernable' mutual group
(35 minutes later)
The Co-operative Group chief executive Euan Sutherland has reportedly offered his resignation and described the mutual as "ungovernable".The Co-operative Group chief executive Euan Sutherland has reportedly offered his resignation and described the mutual as "ungovernable".
Mr Sutherland has apparently offered to stand down on a point of principle, after it was reported over the weekend that the Co-op was planning to offer him and other executives huge salary and bonus increases - despite a £1.5 billion financial black hole in its banking division. Mr Sutherland has apparently offered to stand down on a point of principle, after it was reported over the weekend that the Co-op was planning to offer him and other executives huge pay and bonus increases- including a £1.5 million base salary and £1.5 million retention payment, plus other perks.
According to the BBC, the chief executive has written what amounts to an ultimatum for backing from the board, which is currently trying to persuade him to stay. According to the BBC, the chief executive has written what amounts to an ultimatum for backing from the board, which is currently trying to persuade him to stay. Mr Sutherland, "still may well resign" over the matter, the BBC reported.
Mr Sutherland, who only took on the role last May, "still may well resign" over the matter, the BBC reported. Mr Sutherland joined the company in May last year, having been chief operating officer of B&Q owner Kingfisher. His predecessor, Peter Marks, earned only £1.3 million last year.
The apparent leadership crisis at the Co-op comes after confidential documents showed its new executive team were to receive bonuses in line with FTSE-100 companies of a similar size. At the weekend, Mr Sutherland appeared to hit out at "an individual, or individuals, determined to undermine me personally" on the Co-op’s Facebook page.
This was despite it suffering what chairwoman Ursula Lidbetter called "the biggest crisis in our 150-year history", including the recent scandals surrounding former chairman and Methodist minister Paul Flowers. He said: "We appear to have disaffected people who are determined to make life difficult and embarrassing for The Co-operative at a time when what we need most are professionalism and loyalty to the business."
At the weekend Ms Lidbetter said: "We are now embarking on the long and complex journey to revitalise the wider group. It is against that backdrop that we recruited Euan Sutherland and a top team with the skills and experience needed at this crucial stage in our history, reflecting the necessity for change. Last month, the Co-op announced plans to abandon key parts of its business as the reverberations from its banking scandal continue to shake the operation, ahead of it reporting what could be a £2bn loss later in May.
Questions about the management of the Co-op were raised after the bank unveiled a £1.5 billion hole in its balance sheet last summer. The recapitalisation of the bank left the Co-op Group with a 30 per cent stake- with the rest held largely by hedge funds.
The crisis at the bank deepened after former chairman and Methodist minister Paul Flowers was arrested over drug allegations in November last year. Former chairman Len Wardle resigned in the wake of the scandal
Chairwoman Ursula Lidbetter described the mutual's management woes as "the biggest crisis in our 150-year history", but insisted the group is on a "long and complex" road to recovery.
At the weekend Ms Lidbetter said: "It is against that backdrop that we recruited Euan Sutherland and a top team with the skills and experience needed at this crucial stage in our history, reflecting the necessity for change.
"Euan and his team have already made a significant contribution to The Co-operative Group and we are confident that they will continue to do so.""Euan and his team have already made a significant contribution to The Co-operative Group and we are confident that they will continue to do so."
Timeline: Countdown to crisis
21 October 2013
The Co-operative Group is forced to give up majority control of its bank due to a £1.5bn shortfall in capital, allowing US hedge funds to take charge.
6 November 2013
The bank’s former chairman, the Rev Paul Flowers, gives a disastrous performance before the Commons Treasury committee, quoting wildly inaccurate figures.
17 November 2013
Mr Flowers is outed as buying and using illegal drugs a few days after his committee appearance.
19 November 2013
The group’s chairman, Len Wardle, resigns over the Flowers scandal.
12 December 2013
City grandee Lord Myners appointed to the Co-op board to review the group's governance