Why has Co-op Group boss Richard Pennycook asked for a MASSIVE pay cut?

Co-op Group’s chief executive Richard Pennycook has requested his pay be cut by almost 60%.

Pennycook’s base salary will fall to £750,000 from £1.25m and he has also agreed to reduce his notice period to six months from the current 12 months.

The news comes as Co-op is trying to keep its head above water following a financial meltdown in 2013. At the time, its bank arm reported a £1.5bn hole in its capital and had to be rescued by a group of investors.

Pennycook said: “This has been a year of further progress at the Co-op as we have invested to drive the growth of our businesses.

“Underlying profits have increased but our priority this year has been on putting the building blocks in place for the long-term.

“Whether it’s our investment in lowering prices, rewarding colleagues or campaigning on key issues, we are taking the right steps and the performance of our businesses and the feedback from our members shows us we are on the right track.

“We are, however, only one year into our Rebuild and whether it is driving further growth in our businesses, improving member engagement or getting back to our campaigning roots, there is still much to achieve.”