Co-op chief Pennycook takes 60% pay cut

THE chief executive of Co-operative Group has voluntarily taken a £500,000 pay cut.

From July 1 Richard Pennycook’s base pay will be cut from £1.25m to £750,000.

Long and short-term incentives will also be reduced so that they are in line with the reward available to the widergroup of approximately 80 senior managers and his maximum total remuneration will fall by nearly 60%.

Allan Leighton, the Co-op’s non-executive chair, who continues to donate his annual salary of £250,000 to The Co-operative Foundation said: “The move by Richard to reduce his pay shows the Co-op difference in action, as we champion a better way to do business for our members and their communities.”

Co-op has also made a number of changes at board and executive level, which it says will further strengthen governance and oversight.

Lord Victor Adebowale CBE has been appointed as an independent non-executive director. He is chief executive of Turning Point, the health and social care organisation that employs more than 3,500 people in the UK, as well as a non-executive director of NHS England.

Ian Ellis, chief financial officer, has also been appointed to the group board, taking up the previously vacant position.

Meanwhile it has confirmed Pippa Wicks as chief operating officer, a role she has held on an interim basis since 2014.

Leighton said: “I am delighted that we are attracting top talent at all levels of the group to help us build on the great work that is being done to rebuild the Co-op, and I warmly welcome Victor and Ian to the board.”