Co-op appoints first Independent Non-Executive Chair

The Board of The Co-operative Group have announced the appointment of Allan Leighton as the Society’s first Independent Non-Executive Chair under the reformed governance structure.

Related topics:  Finance News
Rozi Jones
20th February 2015
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As Chair, Allan will work with the Board, the Council of members and the executive team to continue rebuilding The Co-operative Group. He will assume his new role with immediate effect, taking over from Ursula Lidbetter who has chaired the Group since November 2013.

Last year, the Co-operative Group announced losses of £2.5bn for 2013 - the worst results reported in the group's 150-year history.

The group said most of the losses stemmed from the Co-operative Bank, which amounted to £2.1bn. That included a trading loss of £1.44bn for the year to December, when the group lost control of Co-op Bank to US hedge funds.

The Co-op Bank reported pre-tax losses of £1.3bn for 2013 and said at the time that it did not expect to make a profit in 2014 or 2015.

The new Board will be composed of a majority of Independent Directors and designed to ensure greater professionalism and stronger oversight. The appointment of the four remaining Independent Non-Executive Directors is expected ahead of the Group’s Annual General Meeting in May this year. Further elected Directors will join the Board following the AGM.

Sir Christopher Kelly, The Co-operative Group’s Senior Independent Non-Executive Director, said:

“The appointment of our first independent non-executive Chair is a highly significant moment for The Co-operative Group. We are delighted to have a figure of Allan’s experience and standing to head our reformed governance structure.

“We held a thorough and wide-ranging process to appoint our first Chair under the new governance framework and Allan was the outstanding candidate. He has long championed the power of business to benefit local communities and has a reputation for rolling his sleeves up and bringing about sustainable change.

“I would like to take this opportunity to thank Ursula Lidbetter for the huge contribution she has made to The Co-operative Group over many years and particularly as Chair since November 2013. The vital reform of the Group’s governance owes much to her determination and dedication. Without her hard work we would not be ready to embark on the next phase of our journey.”

Richard Pennycook, Group Chief Executive, said:

“It is testament to the strength of the Co-operative brand and the organisation’s potential that a figure of Allan’s standing has chosen to join the Group and I very much look forward to working with him. His background makes him the perfect fit for us at this moment in our development. He is highly respected in the business community; he has deep knowledge of the food retail sector as well as significant turnaround experience across a range of industry sectors; and he has worked in quoted businesses and privately-owned companies.”

Allan Leighton said:

“I am delighted and privileged to be taking up this role. I grew up with this business, because my father ran the local Co-op, so I have a very real understanding of the importance of The Co-operative to local communities and a strong sense of what the Society stands for. I look forward to working with our members, customers and colleagues as we continue the crucial work to rebuild The Co-operative Group and restore it to its rightful place at the heart of communities up and down the UK.”

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