Co-op Chairman encourages members to vote for CEO pay cut

Co-op Chairman Allan Leighton has asked for its mutual members’ support for the pay cut for Chief Executive, Richard Pennycook.

Leighton, upping the campaign to back the pay cut, wants the 2.5 million people eligible to vote on proposals at Co-op’s annual meeting on 21 May, to vote for Pennycook’s base salary to be reduced from £1.25 million to £750,000.

Pennycook, who joined Co-op after a £1.5 billion black hole was found in the banking arm of the business, is set for a pay cut of 60% - a reduction which he suggested and will be phased out throughout the next year.

Earlier this month, Co-op reported that its annual profits dipped by 81% to £23 million, preceding 2014’s figure of £121 million which was boosted by the sale of its farms and pharmacies business.