The former CEO of the Co-op, Shirine Khoury-Haq, received nearly \u00a32 million in compensation prior to her unexpected exit from the company last month. This occurred during a challenging fiscal year, as the retailer faced significant losses attributed to a severe cyberattack.<\/p>\n
In 2025, Khoury-Haq’s overall remuneration package reached \u00a31.9 million, which included a \u00a3165,000 bonus labeled as \u201crewarding growth.\u201d This bonus was authorized by the board despite the company experiencing declining sales and an underlying loss of \u00a3125 million.<\/p>\n
While Khoury-Haq and other executives did not receive their standard annual bonuses due to unmet financial criteria, her pay did encompass a long-term performance bonus from previous years.<\/p>\n
According to the Co-op Group\u2019s annual report, the remuneration committee opted to allocate 10% of the potential total from a three-year incentive plan to all employees. The report stated, \u201cGiven the difficulties faced in 2025, the targets for payment under this scheme were not achieved. Nevertheless, the committee wishes to acknowledge the exceptional dedication and hard work exhibited by all staff during this challenging year.\u201d<\/p>\n
It further highlighted the remarkable response of employees to the unprecedented cyber-attack, which warranted a \u00a3100 payout to full-time frontline workers who were employed throughout 2025.<\/p>\n
The report did not clarify whether Khoury-Haq would receive any compensation upon her departure but confirmed she would not qualify for further payments from the \u201crewarding growth\u201d scheme. She is, however, eligible for a separate performance bonus of \u00a3682,000 next May, contingent upon meeting specific conditions. Overall, her pay package for 2025 saw a decrease from \u00a32.2 million in 2024.<\/p>\n
Kate Allum, a board member and former head of the dairy company First Milk, will serve as the interim CEO while the search for a permanent successor is underway.<\/p>\n
Khoury-Haq\u2019s resignation followed her four-year tenure as CEO and almost seven years with the Co-op, occurring just a month after concerns were raised regarding the company\u2019s upper management culture.<\/p>\n
Last week, Khoury-Haq stated that her resignation was not related to the allegations of a toxic workplace culture, describing her departure as a personal choice driven by her desire to pursue new opportunities.<\/p>\n
In February, the Co-op defended its leadership after reports surfaced claiming that senior executives had expressed concerns about a toxic environment. The company maintained that such criticisms did not reflect the views of its broader leadership and staff.<\/p>\n
The Co-op reported a decline in trading momentum as it worked to recover from the cyberattack and noted challenges related to a shrinking convenience market amid tightened household budgets.<\/p>\n
Additionally, the group faced approximately \u00a3150 million in cost pressures over the year due to rises in national insurance contributions, wages, and packaging taxes.<\/p>\n
A spokesperson for the Co-op commented, \u201cThe rewarding growth incentive plan is a three-year initiative that includes 53,000 eligible employees across the Co-op receiving payouts this year. The board chose to exercise discretion in recognizing the extraordinary efforts of colleagues during a notably tough year, particularly in response to the cyber incident. The 10% payout represents the maximum outcome for this year, reflecting both that contribution and our commitment to ensuring employees participate in the recovery and future success of our Co-op.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The former CEO of the Co-op, Shirine Khoury-Haq, received nearly \u00a32 million in compensation prior to her unexpected exit from the company last month. This occurred during a challenging fiscal year, as the retailer faced significant losses attributed to a severe cyberattack. In 2025, Khoury-Haq’s overall remuneration package reached \u00a31.9 million, which included a \u00a3165,000 […]<\/p>\n","protected":false},"author":2,"featured_media":2948,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8,178,179,180,88],"tags":[],"class_list":["post-2949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-co-operative-group","category-executive-pay-and-bonuses","category-retail-industry","category-uk"],"yoast_head":"\n