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| Co-op accepts resignation of chief executive Euan Sutherland | |
| (35 minutes later) | |
| The Co-operative Group has accepted the resignation of chief executive Euan Sutherland, who described the mutual as "ungovernable". | |
| Mr Sutherland 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 wrote what amounted to an ultimatum for backing from the board. | |
| 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. | 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. |
| 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. | 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. |
| 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." | 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." |
| 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. | 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. | 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 | 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. | 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. | 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 | Timeline: Countdown to crisis |
| 21 October 2013 | 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. | 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 | 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. | 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 | 17 November 2013 |
| Mr Flowers is outed as buying and using illegal drugs a few days after his committee appearance. | Mr Flowers is outed as buying and using illegal drugs a few days after his committee appearance. |
| 19 November 2013 | 19 November 2013 |
| The group’s chairman, Len Wardle, resigns over the Flowers scandal. | The group’s chairman, Len Wardle, resigns over the Flowers scandal. |
| 12 December 2013 | 12 December 2013 |
| Lord Myners appointed to the Co-op board to review the group's governance | Lord Myners appointed to the Co-op board to review the group's governance |