Co-op Group chief executive’s offer to resign accepted

The Co-operative Group has confirmed that it has accepted Euan Sutherland’s resignation as chief executive.

16:59 11 March 2014

Co-op chief executive Euan Sutherland has resigned as chief executive. It has emerged that his offer of resignation was accepted and that chief financial officer Richard Pennycook will act as interim boss.

However, BBC Business editor Robert Peston said that the Co-op board may still have 48 hours to persuade him to stay.

His resignation came after revelations over executive salaries. Writing on Co-op’s Facebook page, Mr Sutherland said that there seemed to be “an individual or individuals determined to undermine me personally.” However, he added that he was determined to see through “the vital transformation of our business.”

He added: "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."

Meg Hillier, Labour and Co-operative MP for Hackney South and Shoreditch, was shocked over the news. She said: "He is running an organisation that is still run by its members, and he needs to be accountable to them. The Co-operative movement is a mutual movement where we make decisions together.”