By Daniel Hunter
Lord Myners, the former City minister, has quit the board of the Co-operative Group.
Lord Myners has recently come under criticism for his plans to reform the troubled group. It’s yet another blow for the group as it faces losses of around £2bn this year.
Last month, the group’s chief executive, Euan Sutherland, resigned for the position, describing the business as “ungovernable”.
Lord Myners plans for reform would see the Co-op Group run much more like a publicly listed company; something that was criticised by Co-op’s largest independent society.
The Group said Lord Myners’ review will continue despite his departure.
Lord Myners’ initial review found that its elected directors had overseen “breathtakingly value-destructive” deals, including the purchases of Britannia and Somerfield.
It also said that the board “consistently produced governors without the necessary qualifications and experience to provide effective board leadership”.
Lord Myners was appointed as a senior independent director in December, charged with conducting the review.
Dr. Roger Barker, Director of Corporate Governance at the Institute of Directors, said:
“The resignation of Lord Myners is a worrying sign for the troubled mutual. During the last few years, the board of the Co-op has proved itself to be a poor steward of the organisations’ resources. Decisions have been made which have destroyed large amounts of value and threatened the Co-op’s very existence. Their current model doesn’t work.
“A clear lesson from recent problems is that the board of the Co-op needs to become a competent and professional decision-making body. This requirement is not limited to the Co-op, with its distinctive mutual structure. Such competences are needed by all types of organisation if they are to survive and flourish”.
Join us on