Co-op reshuffles management in group’s first wave of reforms
THE MANAGEMENT team at the Co-op was reshuffled yesterday in the embattled group’s latest bid to show the leadership is serious about reforming its structure. It came as the mutual delayed its annual results and general meeting from next week to 17 April.
The shake-up is the first stage of a series of reforms which are expected to include a revamp of the Co-op Board – a group of around 20 members elected by local Co-operatives – and changes to the way the democratic structure operates.
The hope is that the management failings which led to the near collapse of the Co-op Bank and record losses in the wider group will be prevented with the new structure.
Increased focus on the long term future of the group was highlighted with the promotion of Paula Kerrigan to the executive management committee, joining as chief strategy officer.
The group’s finance businesses will also get increased attention.
Ex-Co-op Bank deputy chief Rod Bulmer is joining the management executive as chief executive of consumer services, heading general insurance, funeralcare and legal services.
And Mark Summerfield is moving from the insurance divisions to become managing director of the Co-op Banking Group.
He will run general insurance as well as splitting the group from the bank.
“We are focused on the hard work needed to complete the development of our new strategy,” said interim chief executive Richard Pennycook.
“This is the right team to deliver that strategy in the interests of all our stakeholders – customers, colleagues and members.”
Pennycook will be in post until a permanent boss is found, which could take as much as a year.
After that he will become chief operating officer (COO) to oversee finance, procurement, risk and the group’s transformation. To plug the gap until that point the Co-op is recruiting an interim COO.