Co-operative chief executive Richard Pennycook's basic salary and bonus cut confirmed: And here's how much it's dropping by

 
Catherine Neilan
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Source: The Co-op

The Co-op has confirmed chief executive Richard Pennycook has requested - and been given - a "very large reduction in his own remuneration package".

At the same time, the group has revealed a pay rise for store staff.

As reported last night, Pennycook's basic salary will drop from £1.25m to £750,000 with effect from 1 July and his maximum bonus will be set at 40 per cent of base salary, compared with 100 per cent currently, from 2017.

His maximum long term incentive plan payment will also be dropped to 50 per cent of his base salary, compared to 100 per cent currently, again from 2017.

Combined with the reduction in pension contribution, the effect of these changes will be to reduce the chief executive's maximum total remuneration by more than 60 per cent, the Co-op said this morning as it revealed full year results.

Pennycook has also agreed to reduce his notice period to six months, from the current 12 months.

It comes as the Co-Op reveals an increase in the hourly pay rates for "colleagues in the frontline of our business, serving customers in our stores".

The majority of store staff are already paid above the new National Living Wage, and the standard rate for new starters in Co-operative Food stores will also be increased by 1.8 from now on.

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