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CEO resigns at scandal-hit Co-op

Tuesday, Mar 11, 2014 - 01:20

Mar. 11 - The CEO of Britain's Co-operative Group Euan Sutherland has stepped down after calling the group ''ungovernable.'' Joanna Partridge looks at the crisis engulfing one of Britain's oldest organisations.

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It was rocked by scandal and saw its worst-ever year of losses in 2013. Now Britain's Co-operative Group has lost its CEO. Euan Sutherland says the business, which is owned by its members, is "ungovernable". The Co-op's a familiar sight on the UK's high streets - running businesses from supermarkets to banks. In the past 170 years, it's grown from a small shop in northern England which distributed a share of its profits - to a global movement. But the last twelve months have been a rocky ride. The Co-op was hit by the discovery of a £1.5 billion hole in its banking arm. And the lender's chairman, Methodist minister Paul Flowers, quit amid a drugs scandal. Sutherland only joined in May last year. His letter of resignation came after a newspaper reported he'd receive over £3.5 million in pay and benefits this year - and other executives would also get pay hikes. Sutherland took to the Co-operative Employees' Facebook page to criticise leaks to the media, calling them attempts to undermine him personally. When resigning, he said he wouldn't accept retention and bonus payments. The group's CFO will now take over as interim boss. Finding a new CEO, just another task for the Co-op as it tries to get back on track.

CEO resigns at scandal-hit Co-op

Tuesday, Mar 11, 2014 - 01:20

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