Sutherland speaks out over Co-op exit

FORMER Co-op Group chief Euan Sutherland has spoken out about the reasons behind his dramatic departure.

In an interview with the BBC he said the move had been long considered even though he was only in the job for 10 months.

The final straw was the leak to the The Observer of executive pay details, including his £3.6m package. Mr Sutherland saw this as another attempt to frustrate his reforms, and followed earlier leaks about the potential sale of the group’s farms and pharmacies.

He told the BBC: “The senior democrats [as elected Co-op officials are often called] talk the talk of reform, but in practice they won’t do it.”

He added: “My hope is that from the resignation will come healthy reform.”

Mr Sutherland also stressed that a group of senior executives, including the finance director Richard Pennycook, who is now interim chief executive, were “there for the pride of revitalising the Co-op”.

He added: “We want it become a campaigning organisation again, especially in communities. And it has to be for more than just the 600 activists, but also for the millions of members and customers”.

He is hopeful the Co-op will implement the management reforms being prepared by Lord Myners, which are likely to give the Co-op a flatter structure and empower the group’s executives, at the expense of the elected officials.