His base pay will fall from £1.25 million to £750,000
The chief executive of the Co-operative Group has asked for a massive pay cut as the company seeks to rebuild its business.
The request has been approved, meaning Richard Pennycook’s base pay will fall from £1.25 million to £750,000. His bonus and pension contributions will also be cut, meaning that his total remuneration will be 60% lower.
Pennycook was paid a total of nearly £3.6 million last year including £1.8 million in performance-related pay according to the Co-op’s 2015 annual report.
Allan Leighton, the Co-op’s non-executive chair, 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.”
Profits "firmly on track"
Pennycook replaced former boss Euan Sutherland, who resigned in March 2014 after leaked documents revealed plans of the company giving him a substantial pay increase. It would have secured him a comfortable pay packet of almost £3.7 million, even though the Co-operative Group reported a £2.3 billion loss in 2013.
Profits for the firm recovered in 2014, but plummeted again in 2015. This year the group says it's “firmly on track”, with annual profits rising by 11%.
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