Staff have expressed grave concern for the future of The Co-operative Group following the resignation this week of CEO Euan Sutherland after just 10 months in the role.
Sutherland resigned shortly after details of a proposed £3.6m pay package were leaked to the media, claiming it would have been “impossible” to implement the “fundamental modernisation” needed until “professional and commercial governance” were adopted by the society.
FD Richard Pennycook has been drafted in as interim CEO until a replacement is found.
Writing on The Co-op’s employee Facebook page, staff credited Sutherland with saving The Co-operative Bank and the wider group from administration.
“I still have a job thanks to him, now I don’t know what the future holds,” said one.
Another posted: “Time to start looking for another job! Least Euan was brave enough to start the changes needed, what next? Looks like the idiots have got their way eventually.”
And another said: “If it wasn’t for crummy elected members on boards, he would be here right now turning our society around. Co-operatively!”
They also questioned if anyone would want the job following a year of turmoil at the society.
“I think we’ll struggle to attract anyone to Euan’s job. A poisoned chalice if ever there was one. Something tells me our problems have only just begun,” posted one member of staff.
Another said: “The one man we could trust to get us back on track and we lose him. I truly believe it’s a matter of months now till we go under. How many mistakes does the group need to make before they realise we must change?”
Someone else wrote: “RIP Co-op. Sutherland was the only person to save this once great institution.”
Speculation has also started over who could replace him. One headhunter tipped Ian McLeod, who last month moved to a senior role at Wesfarmers. Last month, The Grocer revealed he had been on the shortlist to replace Sainsbury’s CEO Justin King.
A senior figure in the convenience sector said any replacement would need a retail background. “The bank isn’t as big as it was and they’re positioning themselves as a convenience operator rather than one of the big five,” he said.
But another suggested the role should stay with Pennycook. “He’s not the best man for the job. He’s the only man for the job.”
However, Pennycook told the BBC this week that he would not be applying for the role.
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